Correlation Between Altrius Global and WBI Power

Can any of the company-specific risk be diversified away by investing in both Altrius Global and WBI Power 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 WBI Power 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 WBI Power Factor, you can compare the effects of market volatilities on Altrius Global and WBI Power 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 WBI Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altrius Global and WBI Power.

Diversification Opportunities for Altrius Global and WBI Power

0.18

Correlation Coefficient

Altrius Global  WBI Power

Average diversification

The 3 months correlation between Altrius and WBI is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Altrius Global Dividend and WBI Power Factor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WBI Power Factor 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 WBI Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WBI Power Factor has no effect on the direction of Altrius Global i.e., Altrius Global and WBI Power go up and down completely randomly.

Pair Corralation between Altrius Global and WBI Power

Given the investment horizon of 90 days Altrius Global Dividend is expected to generate 0.66 times more return on investment than WBI Power. However, Altrius Global Dividend is 1.52 times less risky than WBI Power. It trades about 0.31 of its potential returns per unit of risk. WBI Power Factor is currently generating about 0.05 per unit of risk. If you would invest  3,112  in Altrius Global Dividend on December 19, 2024 and sell it today you would earn a total of  422.00  from holding Altrius Global Dividend or generate 13.56% return on investment over 90 days.

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

Altrius Global Dividend  vs.  WBI Power Factor

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 24 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Altrius Global exhibited solid returns over the last few months and may actually be approaching a breakup point.

WBI Power Factor

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in WBI Power Factor are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong forward indicators, WBI Power is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Altrius Global and WBI Power

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

The idea behind Altrius Global Dividend and WBI Power Factor 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.