Correlation Between Alpha Services and Athens General
Can any of the company-specific risk be diversified away by investing in both Alpha Services and Athens General 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 Alpha Services and Athens General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alpha Services and and Athens General Composite, you can compare the effects of market volatilities on Alpha Services and Athens General 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 Alpha Services with a short position of Athens General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha Services and Athens General.
Diversification Opportunities for Alpha Services and Athens General
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alpha and Athens is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Services and and Athens General Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athens General Composite and Alpha Services 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 Alpha Services and are associated (or correlated) with Athens General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athens General Composite has no effect on the direction of Alpha Services i.e., Alpha Services and Athens General go up and down completely randomly.
Pair Corralation between Alpha Services and Athens General
Assuming the 90 days trading horizon Alpha Services and is expected to generate 2.66 times more return on investment than Athens General. However, Alpha Services is 2.66 times more volatile than Athens General Composite. It trades about 0.19 of its potential returns per unit of risk. Athens General Composite is currently generating about 0.1 per unit of risk. If you would invest 137.00 in Alpha Services and on August 31, 2024 and sell it today you would earn a total of 11.00 from holding Alpha Services and or generate 8.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alpha Services and vs. Athens General Composite
Performance |
| Timeline |
Alpha Services and Athens General Volatility Contrast
Predicted Return Density |
| Returns |
Alpha Services and
Pair trading matchups for Alpha Services
Athens General Composite
Pair trading matchups for Athens General
Pair Trading with Alpha Services and Athens General
The main advantage of trading using opposite Alpha Services and Athens General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpha Services position performs unexpectedly, Athens General 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 Athens General will offset losses from the drop in Athens General's long position.| Alpha Services vs. Piraeus Financial Holdings | Alpha Services vs. Eurobank Ergasias Services | Alpha Services vs. National Bank of | Alpha Services vs. Greek Organization of |
| Athens General vs. CPI Computer Peripherals | Athens General vs. Bank of Greece | Athens General vs. Karelia Tobacco | Athens General vs. Aegean Airlines SA |
Check out your portfolio center.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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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