Correlation Between Timken and ALTICE
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By analyzing existing cross correlation between Timken Company and ALTICE FRANCE S, you can compare the effects of market volatilities on Timken and ALTICE 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 Timken with a short position of ALTICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Timken and ALTICE.
Diversification Opportunities for Timken and ALTICE
Very good diversification
The 3 months correlation between Timken and ALTICE is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Timken Company and ALTICE FRANCE S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALTICE FRANCE S and Timken 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 Timken Company are associated (or correlated) with ALTICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALTICE FRANCE S has no effect on the direction of Timken i.e., Timken and ALTICE go up and down completely randomly.
Pair Corralation between Timken and ALTICE
Considering the 90-day investment horizon Timken Company is expected to generate 1.12 times more return on investment than ALTICE. However, Timken is 1.12 times more volatile than ALTICE FRANCE S. It trades about -0.09 of its potential returns per unit of risk. ALTICE FRANCE S is currently generating about -0.24 per unit of risk. If you would invest 8,391 in Timken Company on August 31, 2024 and sell it today you would lose (711.00) from holding Timken Company or give up 8.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 45.45% |
| Values | Daily Returns |
Timken Company vs. ALTICE FRANCE S
Performance |
| Timeline |
| Timken Company |
| ALTICE FRANCE S |
Timken and ALTICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Timken and ALTICE
The main advantage of trading using opposite Timken and ALTICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Timken position performs unexpectedly, ALTICE 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 ALTICE will offset losses from the drop in ALTICE's long position.| Timken vs. AMCON Distributing | Timken vs. Espey Mfg Electronics | Timken vs. Servotronics | Timken vs. CompX International |
| ALTICE vs. Cedar Realty Trust | ALTICE vs. Kite Realty Group | ALTICE vs. Inflection Point Acquisition | ALTICE vs. Equinix |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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