Correlation Between Altus Property and GT Capital

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

By analyzing existing cross correlation between Altus Property Ventures and GT Capital Holdings, you can compare the effects of market volatilities on Altus Property and GT Capital 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 Altus Property with a short position of GT Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altus Property and GT Capital.

Diversification Opportunities for Altus Property and GT Capital

0.0

Correlation Coefficient

Altus Property  GT Capital

Pay attention - limited upside

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

Pair Corralation between Altus Property and GT Capital

Assuming the 90 days trading horizon Altus Property Ventures is expected to generate 1.38 times more return on investment than GT Capital. However, Altus Property is 1.38 times more volatile than GT Capital Holdings. It trades about 0.0 of its potential returns per unit of risk. GT Capital Holdings is currently generating about -0.17 per unit of risk. If you would invest  835.00  in Altus Property Ventures on December 30, 2024 and sell it today you would lose (19.00) from holding Altus Property Ventures or give up 2.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	75.81%
Values	Daily Returns

Altus Property Ventures  vs.  GT Capital Holdings

Altus Property Ventures

Risk-Adjusted Performance

Very Weak

Over the last 90 days Altus Property Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Altus Property is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

GT Capital Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days GT Capital Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Altus Property and GT Capital

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

The idea behind Altus Property Ventures and GT Capital Holdings 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.