Correlation Between X Trade and Alta SA
Can any of the company-specific risk be diversified away by investing in both X Trade and Alta SA 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 X Trade and Alta SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X Trade Brokers and Alta SA, you can compare the effects of market volatilities on X Trade and Alta SA 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 X Trade with a short position of Alta SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Trade and Alta SA.
Diversification Opportunities for X Trade and Alta SA
Very weak diversification
The 3 months correlation between XTB and Alta is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding X Trade Brokers and Alta SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alta SA and X Trade 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 X Trade Brokers are associated (or correlated) with Alta SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alta SA has no effect on the direction of X Trade i.e., X Trade and Alta SA go up and down completely randomly.
Pair Corralation between X Trade and Alta SA
Assuming the 90 days trading horizon X Trade Brokers is expected to under-perform the Alta SA. But the stock apears to be less risky and, when comparing its historical volatility, X Trade Brokers is 1.09 times less risky than Alta SA. The stock trades about -0.01 of its potential returns per unit of risk. The Alta SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 217.00 in Alta SA on December 28, 2024 and sell it today you would earn a total of 6.00 from holding Alta SA or generate 2.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
X Trade Brokers vs. Alta SA
Performance |
Timeline |
X Trade Brokers |
Alta SA |
X Trade and Alta SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with X Trade and Alta SA
The main advantage of trading using opposite X Trade and Alta SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Trade position performs unexpectedly, Alta SA 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 Alta SA will offset losses from the drop in Alta SA's long position.X Trade vs. Monnari Trade SA | X Trade vs. Vivid Games SA | X Trade vs. Road Studio SA | X Trade vs. UF Games SA |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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