Correlation Between Velan and Altair Corp
Can any of the company-specific risk be diversified away by investing in both Velan and Altair Corp 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 Velan and Altair Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Velan Inc and Altair Corp, you can compare the effects of market volatilities on Velan and Altair Corp 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 Velan with a short position of Altair Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Velan and Altair Corp.
Diversification Opportunities for Velan and Altair Corp
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Velan and Altair is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Velan Inc and Altair Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altair Corp and Velan 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 Velan Inc are associated (or correlated) with Altair Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altair Corp has no effect on the direction of Velan i.e., Velan and Altair Corp go up and down completely randomly.
Pair Corralation between Velan and Altair Corp
Assuming the 90 days horizon Velan is expected to generate 4.54 times less return on investment than Altair Corp. But when comparing it to its historical volatility, Velan Inc is 2.51 times less risky than Altair Corp. It trades about 0.07 of its potential returns per unit of risk. Altair Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 118,100 in Altair Corp on August 25, 2025 and sell it today you would earn a total of 31,900 from holding Altair Corp or generate 27.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Velan Inc vs. Altair Corp
Performance |
| Timeline |
| Velan Inc |
| Altair Corp |
Velan and Altair Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Velan and Altair Corp
The main advantage of trading using opposite Velan and Altair Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Velan position performs unexpectedly, Altair Corp 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 Altair Corp will offset losses from the drop in Altair Corp's long position.| Velan vs. China High Speed | Velan vs. Novonix | Velan vs. Crawford United | Velan vs. Airtificial Intelligence Structures |
| Altair Corp vs. Pfeiffer Vacuum Technology | Altair Corp vs. Chervon Holdings Limited | Altair Corp vs. Electrolux Professional AB | Altair Corp vs. Harmonic Drive Systems |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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