Correlation Between Alpha Trust and General Commercial
Can any of the company-specific risk be diversified away by investing in both Alpha Trust and General Commercial 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 Trust and General Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alpha Trust Andromeda and General Commercial Industrial, you can compare the effects of market volatilities on Alpha Trust and General Commercial 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 Trust with a short position of General Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha Trust and General Commercial.
Diversification Opportunities for Alpha Trust and General Commercial
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alpha and General is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Trust Andromeda and General Commercial Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Commercial and Alpha Trust 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 Trust Andromeda are associated (or correlated) with General Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Commercial has no effect on the direction of Alpha Trust i.e., Alpha Trust and General Commercial go up and down completely randomly.
Pair Corralation between Alpha Trust and General Commercial
Assuming the 90 days trading horizon Alpha Trust Andromeda is expected to generate 0.26 times more return on investment than General Commercial. However, Alpha Trust Andromeda is 3.8 times less risky than General Commercial. It trades about -0.13 of its potential returns per unit of risk. General Commercial Industrial is currently generating about -0.04 per unit of risk. If you would invest 652.00 in Alpha Trust Andromeda on August 24, 2024 and sell it today you would lose (10.00) from holding Alpha Trust Andromeda or give up 1.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alpha Trust Andromeda vs. General Commercial Industrial
Performance |
| Timeline |
| Alpha Trust Andromeda |
| General Commercial |
Alpha Trust and General Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alpha Trust and General Commercial
The main advantage of trading using opposite Alpha Trust and General Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpha Trust position performs unexpectedly, General Commercial 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 General Commercial will offset losses from the drop in General Commercial's long position.| Alpha Trust vs. Hellenic Exchanges | Alpha Trust vs. Alpha Trust Mutual | Alpha Trust vs. National Bank of | Alpha Trust vs. Lampsa Hellenic Hotels |
| General Commercial vs. Elton International Trading | General Commercial vs. Piraeus Port Authority | General Commercial vs. Hellenic Petroleum SA | General Commercial vs. Flexopack Socit Anonyme |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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