Correlation Between Altrius Global and Horizon Kinetics

Can any of the company-specific risk be diversified away by investing in both Altrius Global and Horizon Kinetics 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 Altrius Global and Horizon Kinetics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Altrius Global Dividend and Horizon Kinetics Inflation, you can compare the effects of market volatilities on Altrius Global and Horizon Kinetics 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 Altrius Global with a short position of Horizon Kinetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altrius Global and Horizon Kinetics.

Diversification Opportunities for Altrius Global and Horizon Kinetics

0.63

Correlation Coefficient

Altrius Global  Horizon Kinetics

Poor diversification

The 3 months correlation between Altrius and Horizon is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Altrius Global Dividend and Horizon Kinetics Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horizon Kinetics Inf and Altrius Global 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 Altrius Global Dividend are associated (or correlated) with Horizon Kinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horizon Kinetics Inf has no effect on the direction of Altrius Global i.e., Altrius Global and Horizon Kinetics go up and down completely randomly.

Pair Corralation between Altrius Global and Horizon Kinetics

Given the investment horizon of 90 days Altrius Global Dividend is expected to generate 0.6 times more return on investment than Horizon Kinetics. However, Altrius Global Dividend is 1.66 times less risky than Horizon Kinetics. It trades about 0.26 of its potential returns per unit of risk. Horizon Kinetics Inflation is currently generating about 0.1 per unit of risk. If you would invest  3,136  in Altrius Global Dividend on December 29, 2024 and sell it today you would earn a total of  351.00  from holding Altrius Global Dividend or generate 11.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Altrius Global Dividend  vs.  Horizon Kinetics Inflation

Altrius Global Dividend

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Altrius Global Dividend are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Altrius Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Horizon Kinetics Inf

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Horizon Kinetics Inflation are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting technical and fundamental indicators, Horizon Kinetics may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Altrius Global and Horizon Kinetics

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

The idea behind Altrius Global Dividend and Horizon Kinetics Inflation 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.