Correlation Between Alpha Trust and Thessaloniki Port
Can any of the company-specific risk be diversified away by investing in both Alpha Trust and Thessaloniki Port 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 Thessaloniki Port 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 Thessaloniki Port Authority, you can compare the effects of market volatilities on Alpha Trust and Thessaloniki Port 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 Thessaloniki Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha Trust and Thessaloniki Port.
Diversification Opportunities for Alpha Trust and Thessaloniki Port
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Alpha and Thessaloniki is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Trust Mutual and Thessaloniki Port Authority in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thessaloniki Port 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 Thessaloniki Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thessaloniki Port has no effect on the direction of Alpha Trust i.e., Alpha Trust and Thessaloniki Port go up and down completely randomly.
Pair Corralation between Alpha Trust and Thessaloniki Port
Assuming the 90 days trading horizon Alpha Trust is expected to generate 91.07 times less return on investment than Thessaloniki Port. But when comparing it to its historical volatility, Alpha Trust Mutual is 26.38 times less risky than Thessaloniki Port. It trades about 0.09 of its potential returns per unit of risk. Thessaloniki Port Authority is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,220 in Thessaloniki Port Authority on November 5, 2024 and sell it today you would earn a total of 510.00 from holding Thessaloniki Port Authority or generate 22.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Alpha Trust Mutual vs. Thessaloniki Port Authority
Performance |
| Timeline |
| Alpha Trust Mutual |
| Thessaloniki Port |
Alpha Trust and Thessaloniki Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alpha Trust and Thessaloniki Port
The main advantage of trading using opposite Alpha Trust and Thessaloniki Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpha Trust position performs unexpectedly, Thessaloniki Port 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 Port will offset losses from the drop in Thessaloniki Port'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 |
| Thessaloniki Port vs. National Bank of | Thessaloniki Port vs. Lampsa Hellenic Hotels | Thessaloniki Port vs. Profile Systems Software | Thessaloniki Port 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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