Correlation Between Kikkoman Corp and Altair Engineering

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

Diversification Opportunities for Kikkoman Corp and Altair Engineering

0.1
  Correlation Coefficient

Average diversification

The 3 months correlation between Kikkoman and Altair is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Kikkoman Corp and Altair Engineering Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altair Engineering and Kikkoman 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 Kikkoman Corp 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 Kikkoman Corp i.e., Kikkoman Corp and Altair Engineering go up and down completely randomly.

Pair Corralation between Kikkoman Corp and Altair Engineering

Assuming the 90 days horizon Kikkoman Corp is expected to under-perform the Altair Engineering. In addition to that, Kikkoman Corp is 1.19 times more volatile than Altair Engineering. It trades about -0.19 of its total potential returns per unit of risk. Altair Engineering is currently generating about 0.01 per unit of volatility. If you would invest  4,905  in Altair Engineering on September 1, 2022 and sell it today you would earn a total of  2.00  from holding Altair Engineering or generate 0.04% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Kikkoman Corp  vs.  Altair Engineering Inc

 Performance (%) 
       Timeline  
Kikkoman Corp 
Kikkoman Performance
0 of 100
Over the last 90 days Kikkoman Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Kikkoman 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 relatively invariable basic indicators, Altair Engineering is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Altair Price Channel

Kikkoman Corp and Altair Engineering Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Kikkoman Corp and Altair Engineering

The main advantage of trading using opposite Kikkoman Corp and Altair Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kikkoman Corp 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.
Kikkoman Corp vs. General Mills
Kikkoman Corp vs. Kraft Heinz
Kikkoman Corp vs. Hormel Foods Corp
Kikkoman Corp vs. Kellogg Company
The idea behind Kikkoman Corp 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.
Altair Engineering vs. Microsoft Corp
Altair Engineering vs. Oracle Corp
Altair Engineering vs. Adobe Systems
Altair Engineering vs. Vmware Inc
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

Other Complementary Tools

Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go