Correlation Between Altair International and Global Helium

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Altair International and Global Helium 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 International and Global Helium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altair International Corp and Global Helium Corp, you can compare the effects of market volatilities on Altair International and Global Helium 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 International with a short position of Global Helium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altair International and Global Helium.

Diversification Opportunities for Altair International and Global Helium

AltairGlobalDiversified AwayAltairGlobalDiversified Away100%
-0.38
  Correlation Coefficient

Very good diversification

The 3 months correlation between Altair and Global is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Altair International Corp and Global Helium Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Helium Corp and Altair International 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 International Corp are associated (or correlated) with Global Helium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Helium Corp has no effect on the direction of Altair International i.e., Altair International and Global Helium go up and down completely randomly.

Pair Corralation between Altair International and Global Helium

Given the investment horizon of 90 days Altair International Corp is expected to generate 0.75 times more return on investment than Global Helium. However, Altair International Corp is 1.33 times less risky than Global Helium. It trades about 0.2 of its potential returns per unit of risk. Global Helium Corp is currently generating about 0.0 per unit of risk. If you would invest  3.30  in Altair International Corp on November 22, 2024 and sell it today you would earn a total of  1.40  from holding Altair International Corp or generate 42.42% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Altair International Corp  vs.  Global Helium Corp

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -2002040
JavaScript chart by amCharts 3.21.15ATAO HECOF
       Timeline  
Altair International Corp 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Altair International Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Altair International displayed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.0250.030.0350.040.0450.050.0550.060.065
Global Helium Corp 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Global Helium Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Global Helium reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.020.0250.030.0350.040.045

Altair International and Global Helium Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-46.96-35.17-23.38-11.590.211.8423.8935.9447.98 0.001750.001800.001850.001900.00195
JavaScript chart by amCharts 3.21.15ATAO HECOF
       Returns  

Pair Trading with Altair International and Global Helium

The main advantage of trading using opposite Altair International and Global Helium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altair International position performs unexpectedly, Global Helium 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 Global Helium will offset losses from the drop in Global Helium's long position.
The idea behind Altair International Corp and Global Helium Corp 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Other Complementary Tools

Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios