Correlation Between Altus Group and Evertz Technologies

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

By analyzing existing cross correlation between Altus Group Limited and Evertz Technologies Limited, you can compare the effects of market volatilities on Altus Group and Evertz Technologies 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 Altus Group with a short position of Evertz Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altus Group and Evertz Technologies.

Diversification Opportunities for Altus Group and Evertz Technologies

0.33

Correlation Coefficient

Altus Group  Evertz Technologies

Weak diversification

The 3 months correlation between Altus and Evertz is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Altus Group Limited and Evertz Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evertz Technologies and Altus Group 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 Altus Group Limited are associated (or correlated) with Evertz Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evertz Technologies has no effect on the direction of Altus Group i.e., Altus Group and Evertz Technologies go up and down completely randomly.

Pair Corralation between Altus Group and Evertz Technologies

Assuming the 90 days trading horizon Altus Group Limited is expected to generate 1.16 times more return on investment than Evertz Technologies. However, Altus Group is 1.16 times more volatile than Evertz Technologies Limited. It trades about 0.16 of its potential returns per unit of risk. Evertz Technologies Limited is currently generating about 0.18 per unit of risk. If you would invest  5,208  in Altus Group Limited on May 5, 2025 and sell it today you would earn a total of  597.00  from holding Altus Group Limited or generate 11.46% return on investment over 90 days.

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

Altus Group Limited  vs.  Evertz Technologies Limited

Altus Group Limited

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Altus Group Limited are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Altus Group may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Evertz Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Evertz Technologies Limited are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Evertz Technologies may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Altus Group and Evertz Technologies

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

The idea behind Altus Group Limited and Evertz Technologies Limited 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.