Correlation Between Alpha Astika and Thessaloniki Water
Can any of the company-specific risk be diversified away by investing in both Alpha Astika and Thessaloniki Water 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 Astika and Thessaloniki Water into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alpha Astika Akinita and Thessaloniki Water Supply, you can compare the effects of market volatilities on Alpha Astika and Thessaloniki Water 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 Astika with a short position of Thessaloniki Water. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha Astika and Thessaloniki Water.
Diversification Opportunities for Alpha Astika and Thessaloniki Water
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alpha and Thessaloniki is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Astika Akinita and Thessaloniki Water Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thessaloniki Water Supply and Alpha Astika 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 Astika Akinita are associated (or correlated) with Thessaloniki Water. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thessaloniki Water Supply has no effect on the direction of Alpha Astika i.e., Alpha Astika and Thessaloniki Water go up and down completely randomly.
Pair Corralation between Alpha Astika and Thessaloniki Water
Assuming the 90 days trading horizon Alpha Astika Akinita is expected to generate 1.72 times more return on investment than Thessaloniki Water. However, Alpha Astika is 1.72 times more volatile than Thessaloniki Water Supply. It trades about 0.0 of its potential returns per unit of risk. Thessaloniki Water Supply is currently generating about -0.01 per unit of risk. If you would invest 790.00 in Alpha Astika Akinita on August 31, 2024 and sell it today you would lose (98.00) from holding Alpha Astika Akinita or give up 12.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alpha Astika Akinita vs. Thessaloniki Water Supply
Performance |
| Timeline |
| Alpha Astika Akinita |
| Thessaloniki Water Supply |
Alpha Astika and Thessaloniki Water Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alpha Astika and Thessaloniki Water
The main advantage of trading using opposite Alpha Astika and Thessaloniki Water positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpha Astika position performs unexpectedly, Thessaloniki Water 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 Thessaloniki Water will offset losses from the drop in Thessaloniki Water's long position.| Alpha Astika vs. Thessaloniki Water Supply | Alpha Astika vs. Jumbo SA | Alpha Astika vs. LAMDA Development SA | Alpha Astika vs. Piraeus Port Authority |
| Thessaloniki Water vs. Hellenic Petroleum SA | Thessaloniki Water vs. Mytilineos SA | Thessaloniki Water vs. Hellenic Telecommunications Organization | Thessaloniki Water vs. Public Power |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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