Correlation Between Arqit Quantum and Altair Engineering

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

Diversification Opportunities for Arqit Quantum and Altair Engineering

0.93
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Arqit and Altair is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Arqit Quantum and Altair Engineering Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altair Engineering and Arqit Quantum 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 Arqit Quantum are associated (or correlated) with Altair Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altair Engineering has no effect on the direction of Arqit Quantum i.e., Arqit Quantum and Altair Engineering go up and down completely randomly.

Pair Corralation between Arqit Quantum and Altair Engineering

Given the investment horizon of 90 days Arqit Quantum is expected to generate 2.31 times more return on investment than Altair Engineering. However, Arqit Quantum is 2.31 times more volatile than Altair Engineering. It trades about 0.05 of its potential returns per unit of risk. Altair Engineering is currently generating about -0.03 per unit of risk. If you would invest  650.00  in Arqit Quantum on April 6, 2022 and sell it today you would earn a total of  17.00  from holding Arqit Quantum or generate 2.62% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Arqit Quantum  vs.  Altair Engineering Inc

 Performance (%) 
      Timeline 
Arqit Quantum 
Arqit Performance
0 of 100
Over the last 90 days Arqit Quantum has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of sluggish performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in August 2022. The recent disarray may also be a sign of long period up-swing for the firm insiders.

Arqit Price Channel

Altair Engineering 
Altair Performance
0 of 100
Over the last 90 days Altair Engineering has generated negative risk-adjusted returns adding no value to investors with long positions. Even with sluggish performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in August 2022. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Altair Price Channel

Arqit Quantum and Altair Engineering Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Arqit Quantum and Altair Engineering

The main advantage of trading using opposite Arqit Quantum and Altair Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arqit Quantum position performs unexpectedly, Altair Engineering 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 Engineering will offset losses from the drop in Altair Engineering's long position.
The idea behind Arqit Quantum and Altair Engineering 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

Other Complementary Tools

Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go