Correlation Between Altri SGPS and Navigator

Can any of the company-specific risk be diversified away by investing in both Altri SGPS and Navigator 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 Altri SGPS and Navigator into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Altri SGPS SA and The Navigator, you can compare the effects of market volatilities on Altri SGPS and Navigator 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 Altri SGPS with a short position of Navigator. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altri SGPS and Navigator.

Diversification Opportunities for Altri SGPS and Navigator

0.43

Correlation Coefficient

Altri SGPS  Navigator

Very weak diversification

The 3 months correlation between Altri and Navigator is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Altri SGPS SA and The Navigator in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navigator and Altri SGPS 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 Altri SGPS SA are associated (or correlated) with Navigator. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navigator has no effect on the direction of Altri SGPS i.e., Altri SGPS and Navigator go up and down completely randomly.

Pair Corralation between Altri SGPS and Navigator

Assuming the 90 days trading horizon Altri SGPS SA is expected to under-perform the Navigator. In addition to that, Altri SGPS is 1.5 times more volatile than The Navigator. It trades about -0.19 of its total potential returns per unit of risk. The Navigator is currently generating about 0.03 per unit of volatility. If you would invest  317.00  in The Navigator on April 23, 2025 and sell it today you would earn a total of  5.00  from holding The Navigator or generate 1.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Altri SGPS SA  vs.  The Navigator

Altri SGPS SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Altri SGPS SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Navigator

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in The Navigator are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Navigator is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Altri SGPS and Navigator

The main advantage of trading using opposite Altri SGPS and Navigator positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altri SGPS position performs unexpectedly, Navigator 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 Navigator will offset losses from the drop in Navigator's long position.

The idea behind Altri SGPS SA and The Navigator 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.

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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 Stocks Directory module to find actively traded stocks across global markets.