Correlation Between Altair Engineering and SOGECLAIR
Can any of the company-specific risk be diversified away by investing in both Altair Engineering and SOGECLAIR 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 Altair Engineering and SOGECLAIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altair Engineering and SOGECLAIR SA INH, you can compare the effects of market volatilities on Altair Engineering and SOGECLAIR 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 Altair Engineering with a short position of SOGECLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altair Engineering and SOGECLAIR.
Diversification Opportunities for Altair Engineering and SOGECLAIR
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Altair and SOGECLAIR is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Altair Engineering and SOGECLAIR SA INH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOGECLAIR SA INH and Altair Engineering 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 Altair Engineering are associated (or correlated) with SOGECLAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOGECLAIR SA INH has no effect on the direction of Altair Engineering i.e., Altair Engineering and SOGECLAIR go up and down completely randomly.
Pair Corralation between Altair Engineering and SOGECLAIR
Assuming the 90 days horizon Altair Engineering is expected to under-perform the SOGECLAIR. But the stock apears to be less risky and, when comparing its historical volatility, Altair Engineering is 4.55 times less risky than SOGECLAIR. The stock trades about -0.03 of its potential returns per unit of risk. The SOGECLAIR SA INH is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,945 in SOGECLAIR SA INH on December 5, 2024 and sell it today you would earn a total of 195.00 from holding SOGECLAIR SA INH or generate 10.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Altair Engineering vs. SOGECLAIR SA INH
Performance |
Timeline |
Altair Engineering |
SOGECLAIR SA INH |
Altair Engineering and SOGECLAIR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Altair Engineering and SOGECLAIR
The main advantage of trading using opposite Altair Engineering and SOGECLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altair Engineering position performs unexpectedly, SOGECLAIR 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 SOGECLAIR will offset losses from the drop in SOGECLAIR's long position.Altair Engineering vs. VITEC SOFTWARE GROUP | Altair Engineering vs. USU Software AG | Altair Engineering vs. Kingdee International Software | Altair Engineering vs. SBM OFFSHORE |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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