Correlation Between Altia Oyj and TERADATA

Can any of the company-specific risk be diversified away by investing in both Altia Oyj and TERADATA 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 Altia Oyj and TERADATA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Altia Oyj and TERADATA, you can compare the effects of market volatilities on Altia Oyj and TERADATA 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 Altia Oyj with a short position of TERADATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altia Oyj and TERADATA.

Diversification Opportunities for Altia Oyj and TERADATA

0.0

Correlation Coefficient

Altia Oyj  TERADATA

Pay attention - limited upside

The 3 months correlation between Altia and TERADATA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Altia Oyj and TERADATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TERADATA and Altia Oyj 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 Altia Oyj are associated (or correlated) with TERADATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TERADATA has no effect on the direction of Altia Oyj i.e., Altia Oyj and TERADATA go up and down completely randomly.

Pair Corralation between Altia Oyj and TERADATA

If you would invest  2,700  in TERADATA on October 4, 2024 and sell it today you would earn a total of  320.00  from holding TERADATA or generate 11.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Altia Oyj  vs.  TERADATA

Altia Oyj

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Altia Oyj has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Altia Oyj is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

TERADATA

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TERADATA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, TERADATA may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Altia Oyj and TERADATA

The main advantage of trading using opposite Altia Oyj and TERADATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altia Oyj position performs unexpectedly, TERADATA 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 TERADATA will offset losses from the drop in TERADATA's long position.

The idea behind Altia Oyj and TERADATA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.