Correlation Between Altaba and 3i Group

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Altaba and 3i Group 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 3i Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altaba Inc and 3i Group Plc, you can compare the effects of market volatilities on Altaba and 3i Group 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 3i Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altaba and 3i Group.

Diversification Opportunities for Altaba and 3i Group

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Altaba and TGOPF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Altaba Inc and 3i Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3i Group Plc 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 3i Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3i Group Plc has no effect on the direction of Altaba i.e., Altaba and 3i Group go up and down completely randomly.

Pair Corralation between Altaba and 3i Group

If you would invest  3,138  in 3i Group Plc on December 29, 2023 and sell it today you would earn a total of  382.00  from holding 3i Group Plc or generate 12.17% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Altaba Inc  vs.  3i Group Plc

 Performance 
       Timeline  
Altaba Inc 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Altaba Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Altaba is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
3i Group Plc 

Risk-Adjusted Performance

6 of 100

 
Low
 
High
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in 3i Group Plc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, 3i Group may actually be approaching a critical reversion point that can send shares even higher in April 2024.

Altaba and 3i Group Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Altaba and 3i Group

The main advantage of trading using opposite Altaba and 3i Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altaba position performs unexpectedly, 3i Group 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 3i Group will offset losses from the drop in 3i Group's long position.
The idea behind Altaba Inc and 3i Group Plc 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.
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

Other Complementary Tools

Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Equity Valuation
Check real value of public entities based on technical and fundamental data
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.