Correlation Between Altamir SCA and Compagnie
Can any of the company-specific risk be diversified away by investing in both Altamir SCA and Compagnie 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 Compagnie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altamir SCA and Compagnie de lOdet, you can compare the effects of market volatilities on Altamir SCA and Compagnie 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 Compagnie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altamir SCA and Compagnie.
Diversification Opportunities for Altamir SCA and Compagnie
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Altamir and Compagnie is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Altamir SCA and Compagnie de lOdet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compagnie de lOdet 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 Compagnie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compagnie de lOdet has no effect on the direction of Altamir SCA i.e., Altamir SCA and Compagnie go up and down completely randomly.
Pair Corralation between Altamir SCA and Compagnie
Assuming the 90 days trading horizon Altamir SCA is expected to under-perform the Compagnie. But the stock apears to be less risky and, when comparing its historical volatility, Altamir SCA is 1.15 times less risky than Compagnie. The stock trades about 0.0 of its potential returns per unit of risk. The Compagnie de lOdet is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 132,498 in Compagnie de lOdet on August 30, 2024 and sell it today you would earn a total of 21,502 from holding Compagnie de lOdet or generate 16.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Altamir SCA vs. Compagnie de lOdet
Performance |
| Timeline |
| Altamir SCA |
| Compagnie de lOdet |
Altamir SCA and Compagnie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altamir SCA and Compagnie
The main advantage of trading using opposite Altamir SCA and Compagnie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altamir SCA position performs unexpectedly, Compagnie 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 Compagnie will offset losses from the drop in Compagnie's long position.| Altamir SCA vs. CBO Territoria SA | Altamir SCA vs. Rubis SCA | Altamir SCA vs. Nexity | Altamir SCA vs. Gaztransport Technigaz SAS |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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