Correlation Between Altaba and Prospect Capital
Can any of the company-specific risk be diversified away by investing in both Altaba and Prospect Capital 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 Altaba and Prospect Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altaba Inc and Prospect Capital, you can compare the effects of market volatilities on Altaba and Prospect Capital 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 Altaba with a short position of Prospect Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altaba and Prospect Capital.
Diversification Opportunities for Altaba and Prospect Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Altaba and Prospect is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Altaba Inc and Prospect Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prospect Capital and Altaba 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 Altaba Inc are associated (or correlated) with Prospect Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prospect Capital has no effect on the direction of Altaba i.e., Altaba and Prospect Capital go up and down completely randomly.
Pair Corralation between Altaba and Prospect Capital
If you would invest (100.00) in Altaba Inc on January 17, 2024 and sell it today you would earn a total of 100.00 from holding Altaba Inc or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Altaba Inc vs. Prospect Capital
Performance |
| Timeline |
| Altaba Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Prospect Capital |
Altaba and Prospect Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altaba and Prospect Capital
The main advantage of trading using opposite Altaba and Prospect Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altaba position performs unexpectedly, Prospect Capital 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 Prospect Capital will offset losses from the drop in Prospect Capital's long position.| Altaba vs. Cedar Fair LP | Altaba vs. Westinghouse Air Brake | Altaba vs. HF Sinclair Corp | Altaba vs. Sphere Entertainment Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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