Correlation Between Equinix and ALTICE
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By analyzing existing cross correlation between Equinix and ALTICE FRANCE S, you can compare the effects of market volatilities on Equinix 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 Equinix with a short position of ALTICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinix and ALTICE.
Diversification Opportunities for Equinix and ALTICE
Poor diversification
The 3 months correlation between Equinix and ALTICE is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Equinix and ALTICE FRANCE S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALTICE FRANCE S and Equinix 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 Equinix 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 S has no effect on the direction of Equinix i.e., Equinix and ALTICE go up and down completely randomly.
Pair Corralation between Equinix and ALTICE
Given the investment horizon of 90 days Equinix is expected to generate 0.42 times more return on investment than ALTICE. However, Equinix is 2.36 times less risky than ALTICE. It trades about 0.26 of its potential returns per unit of risk. ALTICE FRANCE S is currently generating about -0.24 per unit of risk. If you would invest 90,593 in Equinix on August 31, 2024 and sell it today you would earn a total of 7,317 from holding Equinix or generate 8.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 45.45% |
Values | Daily Returns |
Equinix vs. ALTICE FRANCE S
Performance |
Timeline |
Equinix |
ALTICE FRANCE S |
Equinix and ALTICE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Equinix and ALTICE
The main advantage of trading using opposite Equinix and ALTICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinix 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.Equinix vs. Crown Castle | Equinix vs. American Tower Corp | Equinix vs. Iron Mountain Incorporated | Equinix vs. Hannon Armstrong Sustainable |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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