Correlation Between Alpha Trust and Jumbo SA
Can any of the company-specific risk be diversified away by investing in both Alpha Trust and Jumbo SA 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 Jumbo SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alpha Trust Mutual and Jumbo SA, you can compare the effects of market volatilities on Alpha Trust and Jumbo SA 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 Jumbo SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha Trust and Jumbo SA.
Diversification Opportunities for Alpha Trust and Jumbo SA
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alpha and Jumbo is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Trust Mutual and Jumbo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jumbo SA 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 Mutual are associated (or correlated) with Jumbo SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jumbo SA has no effect on the direction of Alpha Trust i.e., Alpha Trust and Jumbo SA go up and down completely randomly.
Pair Corralation between Alpha Trust and Jumbo SA
Assuming the 90 days trading horizon Alpha Trust Mutual is expected to generate 0.31 times more return on investment than Jumbo SA. However, Alpha Trust Mutual is 3.27 times less risky than Jumbo SA. It trades about 0.0 of its potential returns per unit of risk. Jumbo SA is currently generating about -0.19 per unit of risk. If you would invest 874.00 in Alpha Trust Mutual on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Alpha Trust Mutual or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Alpha Trust Mutual vs. Jumbo SA
Performance |
| Timeline |
| Alpha Trust Mutual |
| Jumbo SA |
Alpha Trust and Jumbo SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alpha Trust and Jumbo SA
The main advantage of trading using opposite Alpha Trust and Jumbo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpha Trust position performs unexpectedly, Jumbo SA 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 Jumbo SA will offset losses from the drop in Jumbo SA's long position.| Alpha Trust vs. Jumbo SA | Alpha Trust vs. Gr Sarantis SA | Alpha Trust vs. Hellenic Exchanges | Alpha Trust vs. Aegean Airlines SA |
| Jumbo SA vs. Greek Organization of | Jumbo SA vs. Mytilineos SA | Jumbo SA vs. Motor Oil Corinth | Jumbo SA vs. Hellenic Telecommunications Organization |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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