Correlation Between Altius Minerals and Flushing Financial
Can any of the company-specific risk be diversified away by investing in both Altius Minerals and Flushing Financial 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 Altius Minerals and Flushing Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altius Minerals and Flushing Financial, you can compare the effects of market volatilities on Altius Minerals and Flushing Financial 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 Altius Minerals with a short position of Flushing Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altius Minerals and Flushing Financial.
Diversification Opportunities for Altius Minerals and Flushing Financial
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Altius and Flushing is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Altius Minerals and Flushing Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flushing Financial and Altius Minerals 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 Altius Minerals are associated (or correlated) with Flushing Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flushing Financial has no effect on the direction of Altius Minerals i.e., Altius Minerals and Flushing Financial go up and down completely randomly.
Pair Corralation between Altius Minerals and Flushing Financial
Assuming the 90 days trading horizon Altius Minerals is expected to generate 0.8 times more return on investment than Flushing Financial. However, Altius Minerals is 1.24 times less risky than Flushing Financial. It trades about 0.02 of its potential returns per unit of risk. Flushing Financial is currently generating about -0.04 per unit of risk. If you would invest 1,900 in Altius Minerals on January 20, 2024 and sell it today you would earn a total of 247.00 from holding Altius Minerals or generate 13.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Altius Minerals vs. Flushing Financial
Performance |
| Timeline |
| Altius Minerals |
| Flushing Financial |
Altius Minerals and Flushing Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altius Minerals and Flushing Financial
The main advantage of trading using opposite Altius Minerals and Flushing Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altius Minerals position performs unexpectedly, Flushing Financial 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 Flushing Financial will offset losses from the drop in Flushing Financial's long position.| Altius Minerals vs. Manulife Financial Corp | Altius Minerals vs. Toronto Dominion Bank | Altius Minerals vs. Enbridge | Altius Minerals vs. Telus Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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