Correlation Between Tikehau Capital and Altamir SCA

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

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

Diversification Opportunities for Tikehau Capital and Altamir SCA

0.68

Correlation Coefficient

Tikehau Capital  Altamir SCA

Poor diversification

The 3 months correlation between Tikehau and Altamir is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Tikehau Capital and Altamir SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altamir SCA and Tikehau Capital 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 Tikehau Capital are associated (or correlated) with Altamir SCA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altamir SCA has no effect on the direction of Tikehau Capital i.e., Tikehau Capital and Altamir SCA go up and down completely randomly.

Pair Corralation between Tikehau Capital and Altamir SCA

Assuming the 90 days trading horizon Tikehau Capital is expected to under-perform the Altamir SCA. But the stock apears to be less risky and, when comparing its historical volatility, Tikehau Capital is 1.75 times less risky than Altamir SCA. The stock trades about -0.05 of its potential returns per unit of risk. The Altamir SCA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  2,250  in Altamir SCA on August 31, 2024 and sell it today you would earn a total of  10.00  from holding Altamir SCA or generate 0.44% return on investment over 90 days.

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

Tikehau Capital  vs.  Altamir SCA

Tikehau Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tikehau Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Tikehau Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Altamir SCA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Altamir SCA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Tikehau Capital and Altamir SCA

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

The idea behind Tikehau Capital and Altamir SCA 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.