Correlation Between Navigator and Altri SGPS

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

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

Diversification Opportunities for Navigator and Altri SGPS

0.64

Correlation Coefficient

Navigator  Altri SGPS

Poor diversification

The 3 months correlation between Navigator and Altri is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding The Navigator 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 Navigator 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 The Navigator 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 Navigator i.e., Navigator and Altri SGPS go up and down completely randomly.

Pair Corralation between Navigator and Altri SGPS

Assuming the 90 days trading horizon The Navigator is expected to generate 0.66 times more return on investment than Altri SGPS. However, The Navigator is 1.51 times less risky than Altri SGPS. It trades about 0.01 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  320.00  in The Navigator on April 24, 2025 and sell it today you would earn a total of  0.00  from holding The Navigator or generate 0.0% return on investment over 90 days.

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

The Navigator  vs.  Altri SGPS SA

Navigator

Risk-Adjusted Performance

Weak

Over the last 90 days The Navigator has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

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 weak 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 Navigator and Altri SGPS

The main advantage of trading using opposite Navigator and Altri SGPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navigator 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 The Navigator 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.