Correlation Between Altia Consultores and Amper SA

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

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

Diversification Opportunities for Altia Consultores and Amper SA

0.33

Correlation Coefficient

Altia Consultores  Amper SA

Weak diversification

The 3 months correlation between Altia and Amper is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Altia Consultores SA and Amper SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amper SA and Altia Consultores 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 Consultores SA are associated (or correlated) with Amper SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amper SA has no effect on the direction of Altia Consultores i.e., Altia Consultores and Amper SA go up and down completely randomly.

Pair Corralation between Altia Consultores and Amper SA

Assuming the 90 days trading horizon Altia Consultores SA is expected to generate 0.49 times more return on investment than Amper SA. However, Altia Consultores SA is 2.06 times less risky than Amper SA. It trades about -0.02 of its potential returns per unit of risk. Amper SA is currently generating about -0.1 per unit of risk. If you would invest  462.00  in Altia Consultores SA on September 5, 2024 and sell it today you would lose (4.00) from holding Altia Consultores SA or give up 0.87% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.65%
Values	Daily Returns

Altia Consultores SA  vs.  Amper SA

Altia Consultores

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Altia Consultores SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Altia Consultores is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Amper SA

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Amper SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Amper SA may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Altia Consultores and Amper SA

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

The idea behind Altia Consultores SA and Amper SA 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.