Correlation Between Eurazeo and Altamir SCA
Can any of the company-specific risk be diversified away by investing in both Eurazeo and Altamir SCA 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 Eurazeo and Altamir SCA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eurazeo and Altamir SCA, you can compare the effects of market volatilities on Eurazeo and Altamir SCA 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 Eurazeo with a short position of Altamir SCA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurazeo and Altamir SCA.
Diversification Opportunities for Eurazeo and Altamir SCA
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eurazeo and Altamir is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Eurazeo and Altamir SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altamir SCA and Eurazeo 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 Eurazeo are associated (or correlated) with Altamir SCA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altamir SCA has no effect on the direction of Eurazeo i.e., Eurazeo and Altamir SCA go up and down completely randomly.
Pair Corralation between Eurazeo and Altamir SCA
Assuming the 90 days horizon Eurazeo is expected to generate 0.91 times more return on investment than Altamir SCA. However, Eurazeo is 1.1 times less risky than Altamir SCA. It trades about 0.12 of its potential returns per unit of risk. Altamir SCA is currently generating about -0.02 per unit of risk. If you would invest 6,550 in Eurazeo on November 3, 2024 and sell it today you would earn a total of 1,415 from holding Eurazeo or generate 21.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eurazeo vs. Altamir SCA
Performance |
| Timeline |
| Eurazeo |
| Altamir SCA |
Eurazeo and Altamir SCA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurazeo and Altamir SCA
The main advantage of trading using opposite Eurazeo and Altamir SCA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurazeo position performs unexpectedly, Altamir SCA 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 Altamir SCA will offset losses from the drop in Altamir SCA's long position.| Eurazeo vs. Wendel | Eurazeo vs. Groep Brussel Lambert | Eurazeo vs. Ackermans Van Haaren | Eurazeo vs. SEB SA |
| Altamir SCA vs. Wendel | Altamir SCA vs. Eurazeo | Altamir SCA vs. ABC arbitrage SA | Altamir SCA vs. IDI SCA |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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