Correlation Between Altamir SCA and Artois Nom
Can any of the company-specific risk be diversified away by investing in both Altamir SCA and Artois Nom 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 Artois Nom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altamir SCA and Artois Nom, you can compare the effects of market volatilities on Altamir SCA and Artois Nom 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 Artois Nom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altamir SCA and Artois Nom.
Diversification Opportunities for Altamir SCA and Artois Nom
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Altamir and Artois is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Altamir SCA and Artois Nom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artois Nom 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 Artois Nom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artois Nom has no effect on the direction of Altamir SCA i.e., Altamir SCA and Artois Nom go up and down completely randomly.
Pair Corralation between Altamir SCA and Artois Nom
Assuming the 90 days trading horizon Altamir SCA is expected to generate 2.82 times more return on investment than Artois Nom. However, Altamir SCA is 2.82 times more volatile than Artois Nom. It trades about -0.05 of its potential returns per unit of risk. Artois Nom is currently generating about -0.19 per unit of risk. If you would invest 2,300 in Altamir SCA on August 28, 2024 and sell it today you would lose (50.00) from holding Altamir SCA or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altamir SCA vs. Artois Nom
Performance |
| Timeline |
| Altamir SCA |
| Artois Nom |
Altamir SCA and Artois Nom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altamir SCA and Artois Nom
The main advantage of trading using opposite Altamir SCA and Artois Nom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altamir SCA position performs unexpectedly, Artois Nom 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 Artois Nom will offset losses from the drop in Artois Nom's long position.The idea behind Altamir SCA and Artois Nom 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.| Artois Nom vs. Compagnie du Cambodge | Artois Nom vs. Burelle SA | Artois Nom vs. Compagnie de lOdet | Artois Nom vs. Altareit |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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