Correlation Between ALTEO Energiaszolgalta and ANY Security

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

By analyzing existing cross correlation between ALTEO Energiaszolgaltato Nyrt and ANY Security Printing, you can compare the effects of market volatilities on ALTEO Energiaszolgalta and ANY Security 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 ALTEO Energiaszolgalta with a short position of ANY Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALTEO Energiaszolgalta and ANY Security.

Diversification Opportunities for ALTEO Energiaszolgalta and ANY Security

-0.37

Correlation Coefficient

ALTEO Energiaszolgalta  ANY Security

Very good diversification

The 3 months correlation between ALTEO and ANY is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding ALTEO Energiaszolgaltato Nyrt and ANY Security Printing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANY Security Printing and ALTEO Energiaszolgalta 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 ALTEO Energiaszolgaltato Nyrt are associated (or correlated) with ANY Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANY Security Printing has no effect on the direction of ALTEO Energiaszolgalta i.e., ALTEO Energiaszolgalta and ANY Security go up and down completely randomly.

Pair Corralation between ALTEO Energiaszolgalta and ANY Security

Assuming the 90 days trading horizon ALTEO Energiaszolgalta is expected to generate 2.86 times less return on investment than ANY Security. In addition to that, ALTEO Energiaszolgalta is 1.2 times more volatile than ANY Security Printing. It trades about 0.05 of its total potential returns per unit of risk. ANY Security Printing is currently generating about 0.17 per unit of volatility. If you would invest  129,154  in ANY Security Printing on September 14, 2024 and sell it today you would earn a total of  295,846  from holding ANY Security Printing or generate 229.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

ALTEO Energiaszolgaltato Nyrt  vs.  ANY Security Printing

ALTEO Energiaszolgalta

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ALTEO Energiaszolgaltato Nyrt has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

ANY Security Printing

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ANY Security Printing has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, ANY Security is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with ALTEO Energiaszolgalta and ANY Security

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

The idea behind ALTEO Energiaszolgaltato Nyrt and ANY Security Printing 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.