Correlation Between Dana and Altice
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By analyzing existing cross correlation between Dana Inc and Altice France 55, you can compare the effects of market volatilities on Dana and Altice and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Dana with a short position of Altice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana and Altice.
Diversification Opportunities for Dana and Altice
Very good diversification
The 3 months correlation between Dana and Altice is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dana Inc and Altice France 55 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altice France 55 and Dana is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Dana Inc are associated (or correlated) with Altice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altice France 55 has no effect on the direction of Dana i.e., Dana and Altice go up and down completely randomly.
Pair Corralation between Dana and Altice
Considering the 90-day investment horizon Dana Inc is expected to generate 2.04 times more return on investment than Altice. However, Dana is 2.04 times more volatile than Altice France 55. It trades about 0.26 of its potential returns per unit of risk. Altice France 55 is currently generating about 0.06 per unit of risk. If you would invest 830.00 in Dana Inc on August 31, 2024 and sell it today you would earn a total of 182.00 from holding Dana Inc or generate 21.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.27% |
| Values | Daily Returns |
Dana Inc vs. Altice France 55
Performance |
| Timeline |
| Dana Inc |
| Altice France 55 |
Dana and Altice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dana and Altice
The main advantage of trading using opposite Dana and Altice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dana position performs unexpectedly, Altice can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Altice will offset losses from the drop in Altice's long position.The idea behind Dana Inc and Altice France 55 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Altice vs. AEP TEX INC | Altice vs. US BANK NATIONAL | Altice vs. FactSet Research Systems | Altice vs. Golden Agri Resources |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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