Correlation Between Altareit and GECI International

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

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

Diversification Opportunities for Altareit and GECI International

-0.8

Correlation Coefficient

Altareit  GECI International

Pay attention - limited upside

The 3 months correlation between Altareit and GECI is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Altareit and GECI International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GECI International and Altareit 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 Altareit are associated (or correlated) with GECI International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GECI International has no effect on the direction of Altareit i.e., Altareit and GECI International go up and down completely randomly.

Pair Corralation between Altareit and GECI International

Assuming the 90 days trading horizon Altareit is expected to generate 0.14 times more return on investment than GECI International. However, Altareit is 7.23 times less risky than GECI International. It trades about 0.23 of its potential returns per unit of risk. GECI International SA is currently generating about -0.05 per unit of risk. If you would invest  48,730  in Altareit on April 24, 2025 and sell it today you would earn a total of  2,770  from holding Altareit or generate 5.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Altareit  vs.  GECI International SA

Altareit

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Altareit are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Altareit is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

GECI International

Risk-Adjusted Performance

Very Weak

Over the last 90 days GECI International SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Altareit and GECI International

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

The idea behind Altareit and GECI International SA 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.