Correlation Between ALTAIR RES and GEA GROUP

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

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

Diversification Opportunities for ALTAIR RES and GEA GROUP

0.0

Correlation Coefficient

ALTAIR RES  GEA GROUP

Pay attention - limited upside

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

Pair Corralation between ALTAIR RES and GEA GROUP

If you would invest  4,242  in GEA GROUP on September 13, 2024 and sell it today you would earn a total of  602.00  from holding GEA GROUP or generate 14.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

ALTAIR RES INC  vs.  GEA GROUP

ALTAIR RES INC

Risk-Adjusted Performance

0 of 100

Very Weak

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

GEA GROUP

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GEA GROUP are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, GEA GROUP reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ALTAIR RES and GEA GROUP

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

The idea behind ALTAIR RES INC and GEA GROUP 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.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.