Correlation Between Altamir SCA and Assystem

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

By analyzing existing cross correlation between Altamir SCA and Assystem SA, you can compare the effects of market volatilities on Altamir SCA and Assystem 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 Altamir SCA with a short position of Assystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altamir SCA and Assystem.

Diversification Opportunities for Altamir SCA and Assystem

0.14

Correlation Coefficient

Altamir SCA  Assystem

Average diversification

The 3 months correlation between Altamir and Assystem is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Altamir SCA and Assystem SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assystem SA and Altamir SCA 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 Altamir SCA are associated (or correlated) with Assystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assystem SA has no effect on the direction of Altamir SCA i.e., Altamir SCA and Assystem go up and down completely randomly.

Pair Corralation between Altamir SCA and Assystem

Assuming the 90 days trading horizon Altamir SCA is expected to generate 3.1 times less return on investment than Assystem. But when comparing it to its historical volatility, Altamir SCA is 2.09 times less risky than Assystem. It trades about 0.06 of its potential returns per unit of risk. Assystem SA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  3,585  in Assystem SA on December 1, 2024 and sell it today you would earn a total of  475.00  from holding Assystem SA or generate 13.25% return on investment over 90 days.

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

Altamir SCA  vs.  Assystem SA

Altamir SCA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Altamir SCA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Altamir SCA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Assystem SA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Assystem SA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Assystem sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Altamir SCA and Assystem

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

The idea behind Altamir SCA and Assystem SA 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.