Correlation Between Altamir SCA and Crosswood
Can any of the company-specific risk be diversified away by investing in both Altamir SCA and Crosswood 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 Crosswood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altamir SCA and Crosswood, you can compare the effects of market volatilities on Altamir SCA and Crosswood 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 Crosswood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altamir SCA and Crosswood.
Diversification Opportunities for Altamir SCA and Crosswood
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Altamir and Crosswood is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Altamir SCA and Crosswood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crosswood 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 Crosswood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crosswood has no effect on the direction of Altamir SCA i.e., Altamir SCA and Crosswood go up and down completely randomly.
Pair Corralation between Altamir SCA and Crosswood
Assuming the 90 days trading horizon Altamir SCA is expected to under-perform the Crosswood. But the stock apears to be less risky and, when comparing its historical volatility, Altamir SCA is 3.63 times less risky than Crosswood. The stock trades about -0.05 of its potential returns per unit of risk. The Crosswood is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 735.00 in Crosswood on September 3, 2024 and sell it today you would earn a total of 145.00 from holding Crosswood or generate 19.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.45% |
| Values | Daily Returns |
Altamir SCA vs. Crosswood
Performance |
| Timeline |
| Altamir SCA |
| Crosswood |
Altamir SCA and Crosswood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altamir SCA and Crosswood
The main advantage of trading using opposite Altamir SCA and Crosswood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altamir SCA position performs unexpectedly, Crosswood 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 Crosswood will offset losses from the drop in Crosswood's long position.| Altamir SCA vs. Wendel | Altamir SCA vs. Eurazeo | Altamir SCA vs. ABC arbitrage SA | Altamir SCA vs. IDI SCA |
| Crosswood vs. Rallye SA | Crosswood vs. Altamir SCA | Crosswood vs. Fonciere Lyonnaise | Crosswood vs. Fonciere Inea |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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