Correlation Between Banco Comercial and Altri SGPS

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

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

Diversification Opportunities for Banco Comercial and Altri SGPS

-0.81

Correlation Coefficient

Banco Comercial  Altri SGPS

Pay attention - limited upside

The 3 months correlation between Banco and Altri is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Banco Comercial Portugues and Altri SGPS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altri SGPS SA and Banco Comercial 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 Banco Comercial Portugues are associated (or correlated) with Altri SGPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altri SGPS SA has no effect on the direction of Banco Comercial i.e., Banco Comercial and Altri SGPS go up and down completely randomly.

Pair Corralation between Banco Comercial and Altri SGPS

Assuming the 90 days trading horizon Banco Comercial Portugues is expected to generate 1.09 times more return on investment than Altri SGPS. However, Banco Comercial is 1.09 times more volatile than Altri SGPS SA. It trades about 0.21 of its potential returns per unit of risk. Altri SGPS SA is currently generating about -0.19 per unit of risk. If you would invest  53.00  in Banco Comercial Portugues on April 24, 2025 and sell it today you would earn a total of  14.00  from holding Banco Comercial Portugues or generate 26.42% return on investment over 90 days.

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

Banco Comercial Portugues  vs.  Altri SGPS SA

Banco Comercial Portugues

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Banco Comercial Portugues are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Banco Comercial unveiled solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Banco Comercial and Altri SGPS

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

The idea behind Banco Comercial Portugues and Altri SGPS 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.