Correlation Between Altamir SCA and Tikehau Capital
Can any of the company-specific risk be diversified away by investing in both Altamir SCA and Tikehau Capital 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 Tikehau Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altamir SCA and Tikehau Capital, you can compare the effects of market volatilities on Altamir SCA and Tikehau Capital 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 Tikehau Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altamir SCA and Tikehau Capital.
Diversification Opportunities for Altamir SCA and Tikehau Capital
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Altamir and Tikehau is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Altamir SCA and Tikehau Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tikehau Capital 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 Tikehau Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tikehau Capital has no effect on the direction of Altamir SCA i.e., Altamir SCA and Tikehau Capital go up and down completely randomly.
Pair Corralation between Altamir SCA and Tikehau Capital
Assuming the 90 days trading horizon Altamir SCA is expected to generate 1.83 times more return on investment than Tikehau Capital. However, Altamir SCA is 1.83 times more volatile than Tikehau Capital. It trades about 0.02 of its potential returns per unit of risk. Tikehau Capital is currently generating about -0.16 per unit of risk. If you would invest 2,240 in Altamir SCA on August 30, 2024 and sell it today you would earn a total of 10.00 from holding Altamir SCA or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Altamir SCA vs. Tikehau Capital
Performance |
| Timeline |
| Altamir SCA |
| Tikehau Capital |
Altamir SCA and Tikehau Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altamir SCA and Tikehau Capital
The main advantage of trading using opposite Altamir SCA and Tikehau Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altamir SCA position performs unexpectedly, Tikehau Capital 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 Tikehau Capital will offset losses from the drop in Tikehau Capital's long position.| Altamir SCA vs. CBO Territoria SA | Altamir SCA vs. Rubis SCA | Altamir SCA vs. Nexity | Altamir SCA vs. Gaztransport Technigaz SAS |
| Tikehau Capital vs. Eurazeo | Tikehau Capital vs. Wendel | Tikehau Capital vs. SPIE SA | Tikehau Capital vs. Amundi SA |
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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