Correlation Between Altair Corp and Amphenol
Can any of the company-specific risk be diversified away by investing in both Altair Corp and Amphenol 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 Altair Corp and Amphenol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altair Corp and Amphenol, you can compare the effects of market volatilities on Altair Corp and Amphenol 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 Altair Corp with a short position of Amphenol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altair Corp and Amphenol.
Diversification Opportunities for Altair Corp and Amphenol
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Altair and Amphenol is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Altair Corp and Amphenol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphenol and Altair Corp 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 Altair Corp are associated (or correlated) with Amphenol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amphenol has no effect on the direction of Altair Corp i.e., Altair Corp and Amphenol go up and down completely randomly.
Pair Corralation between Altair Corp and Amphenol
Given the investment horizon of 90 days Altair Corp is expected to generate 1.5 times more return on investment than Amphenol. However, Altair Corp is 1.5 times more volatile than Amphenol. It trades about 0.14 of its potential returns per unit of risk. Amphenol is currently generating about 0.13 per unit of risk. If you would invest 118,100 in Altair Corp on September 10, 2025 and sell it today you would earn a total of 30,900 from holding Altair Corp or generate 26.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Altair Corp vs. Amphenol
Performance |
| Timeline |
| Altair Corp |
| Amphenol |
Altair Corp and Amphenol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altair Corp and Amphenol
The main advantage of trading using opposite Altair Corp and Amphenol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altair Corp position performs unexpectedly, Amphenol 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 Amphenol will offset losses from the drop in Amphenol's long position.| Altair Corp vs. Pfeiffer Vacuum Technology | Altair Corp vs. Chervon Holdings Limited | Altair Corp vs. Electrolux Professional AB | Altair Corp vs. Harmonic Drive Systems |
| Amphenol vs. Intuit Inc | Amphenol vs. Sony Group Corp | Amphenol vs. KLA Tencor | Amphenol vs. Applied Materials |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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