Correlation Between Altair Resources and Mayfair Acquisition

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

Diversification Opportunities for Altair Resources and Mayfair Acquisition

1.0
  Correlation Coefficient

No risk reduction

The 3 months correlation between Altair and Mayfair is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Altair Resources and Mayfair Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayfair Acquisition and Altair Resources 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 Resources are associated (or correlated) with Mayfair Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayfair Acquisition has no effect on the direction of Altair Resources i.e., Altair Resources and Mayfair Acquisition go up and down completely randomly.

Pair Corralation between Altair Resources and Mayfair Acquisition

If you would invest  2.00  in Mayfair Acquisition on September 8, 2025 and sell it today you would earn a total of  0.00  from holding Mayfair Acquisition or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Altair Resources  vs.  Mayfair Acquisition

 Performance 
       Timeline  
Altair Resources 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Altair Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Altair Resources is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Mayfair Acquisition 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Mayfair Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Mayfair Acquisition is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Altair Resources and Mayfair Acquisition Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Altair Resources and Mayfair Acquisition

The main advantage of trading using opposite Altair Resources and Mayfair Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altair Resources position performs unexpectedly, Mayfair Acquisition 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 Mayfair Acquisition will offset losses from the drop in Mayfair Acquisition's long position.
The idea behind Altair Resources and Mayfair Acquisition 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

Other Complementary Tools

Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas