Pair Correlation Between Verint Systems and Altaba

This module allows you to analyze existing cross correlation between Verint Systems Inc and Altaba Inc. You can compare the effects of market volatilities on Verint Systems and Altaba 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 Verint Systems with a short position of Altaba. See also your portfolio center. Please also check ongoing floating volatility patterns of Verint Systems and Altaba.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 Verint Systems Inc  vs   Altaba Inc
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Verint Systems Inc is expected to under-perform the Altaba. But the stock apears to be less risky and, when comparing its historical volatility, Verint Systems Inc is 1.57 times less risky than Altaba. The stock trades about -0.23 of its potential returns per unit of risk. The Altaba Inc is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  8,030  in Altaba Inc on January 26, 2018 and sell it today you would lose (254.00)  from holding Altaba Inc or give up 3.16% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Verint Systems and Altaba
0.91

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification

Almost no diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Verint Systems Inc

  
0 

Risk-Adjusted Performance

Over the last 30 days Verint Systems Inc has generated negative risk-adjusted returns adding no value to investors with long positions.

Altaba Inc

  
0 

Risk-Adjusted Performance

Over the last 30 days Altaba Inc has generated negative risk-adjusted returns adding no value to investors with long positions.