Correlation Between Figaro Coffee and Altus Property
Can any of the company-specific risk be diversified away by investing in both Figaro Coffee and Altus Property at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Figaro Coffee and Altus Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Figaro Coffee Group and Altus Property Ventures, you can compare the effects of market volatilities on Figaro Coffee and Altus Property 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 Figaro Coffee with a short position of Altus Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Figaro Coffee and Altus Property.
Diversification Opportunities for Figaro Coffee and Altus Property
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Figaro and Altus is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Figaro Coffee Group and Altus Property Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altus Property Ventures and Figaro Coffee 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 Figaro Coffee Group are associated (or correlated) with Altus Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altus Property Ventures has no effect on the direction of Figaro Coffee i.e., Figaro Coffee and Altus Property go up and down completely randomly.
Pair Corralation between Figaro Coffee and Altus Property
Assuming the 90 days trading horizon Figaro Coffee Group is expected to under-perform the Altus Property. But the stock apears to be less risky and, when comparing its historical volatility, Figaro Coffee Group is 1.17 times less risky than Altus Property. The stock trades about -0.06 of its potential returns per unit of risk. The Altus Property Ventures is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 858.00 in Altus Property Ventures on September 3, 2024 and sell it today you would lose (22.00) from holding Altus Property Ventures or give up 2.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Figaro Coffee Group vs. Altus Property Ventures
Performance |
| Timeline |
| Figaro Coffee Group |
| Altus Property Ventures |
Figaro Coffee and Altus Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Figaro Coffee and Altus Property
The main advantage of trading using opposite Figaro Coffee and Altus Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Figaro Coffee position performs unexpectedly, Altus Property 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 Altus Property will offset losses from the drop in Altus Property's long position.| Figaro Coffee vs. Metropolitan Bank Trust | Figaro Coffee vs. Manulife Financial Corp | Figaro Coffee vs. East West Banking | Figaro Coffee vs. COL Financial Group |
| Altus Property vs. Semirara Mining Corp | Altus Property vs. Integrated Micro Electronics | Altus Property vs. Manila Mining Corp | Altus Property vs. SM Investments Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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