Correlation Between Altamir SCA and Courtois
Can any of the company-specific risk be diversified away by investing in both Altamir SCA and Courtois 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 Courtois into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altamir SCA and Courtois SA, you can compare the effects of market volatilities on Altamir SCA and Courtois 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 Courtois. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altamir SCA and Courtois.
Diversification Opportunities for Altamir SCA and Courtois
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Altamir and Courtois is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Altamir SCA and Courtois SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Courtois 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 Courtois. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Courtois SA has no effect on the direction of Altamir SCA i.e., Altamir SCA and Courtois go up and down completely randomly.
Pair Corralation between Altamir SCA and Courtois
Assuming the 90 days trading horizon Altamir SCA is expected to generate 1.28 times more return on investment than Courtois. However, Altamir SCA is 1.28 times more volatile than Courtois SA. It trades about -0.01 of its potential returns per unit of risk. Courtois SA is currently generating about -0.03 per unit of risk. If you would invest 2,450 in Altamir SCA on January 18, 2025 and sell it today you would lose (100.00) from holding Altamir SCA or give up 4.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altamir SCA vs. Courtois SA
Performance |
| Timeline |
| Altamir SCA |
| Courtois SA |
Altamir SCA and Courtois Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altamir SCA and Courtois
The main advantage of trading using opposite Altamir SCA and Courtois positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altamir SCA position performs unexpectedly, Courtois 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 Courtois will offset losses from the drop in Courtois' long position.| Altamir SCA vs. Wendel | Altamir SCA vs. Eurazeo | Altamir SCA vs. ABC arbitrage SA | Altamir SCA vs. IDI SCA |
| Courtois vs. Linedata Services SA | Courtois vs. Les Hotels Bav | Courtois vs. Odyssee Technologies SA | Courtois vs. Fiducial Office Solutions |
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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