Correlation Between Altamir SCA and Argan SA
Can any of the company-specific risk be diversified away by investing in both Altamir SCA and Argan SA 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 Altamir SCA and Argan SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altamir SCA and Argan SA, you can compare the effects of market volatilities on Altamir SCA and Argan SA 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 Altamir SCA with a short position of Argan SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altamir SCA and Argan SA.
Diversification Opportunities for Altamir SCA and Argan SA
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Altamir and Argan is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Altamir SCA and Argan SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argan SA and Altamir SCA 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 Altamir SCA are associated (or correlated) with Argan SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argan SA has no effect on the direction of Altamir SCA i.e., Altamir SCA and Argan SA go up and down completely randomly.
Pair Corralation between Altamir SCA and Argan SA
Assuming the 90 days trading horizon Altamir SCA is expected to generate 0.8 times more return on investment than Argan SA. However, Altamir SCA is 1.25 times less risky than Argan SA. It trades about 0.21 of its potential returns per unit of risk. Argan SA is currently generating about 0.15 per unit of risk. If you would invest 2,300 in Altamir SCA on November 18, 2024 and sell it today you would earn a total of 100.00 from holding Altamir SCA or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altamir SCA vs. Argan SA
Performance |
| Timeline |
| Altamir SCA |
| Argan SA |
Altamir SCA and Argan SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altamir SCA and Argan SA
The main advantage of trading using opposite Altamir SCA and Argan SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altamir SCA position performs unexpectedly, Argan SA 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 Argan SA will offset losses from the drop in Argan SA's long position.| Altamir SCA vs. Wendel | Altamir SCA vs. Eurazeo | Altamir SCA vs. ABC arbitrage SA | Altamir SCA vs. IDI SCA |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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