Correlation Between Iktinos Hellas and Alpha Trust
Can any of the company-specific risk be diversified away by investing in both Iktinos Hellas and Alpha Trust 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 Iktinos Hellas and Alpha Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iktinos Hellas SA and Alpha Trust Mutual, you can compare the effects of market volatilities on Iktinos Hellas and Alpha Trust 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 Iktinos Hellas with a short position of Alpha Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iktinos Hellas and Alpha Trust.
Diversification Opportunities for Iktinos Hellas and Alpha Trust
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Iktinos and Alpha is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Iktinos Hellas SA and Alpha Trust Mutual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Trust Mutual and Iktinos Hellas 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 Iktinos Hellas SA are associated (or correlated) with Alpha Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Trust Mutual has no effect on the direction of Iktinos Hellas i.e., Iktinos Hellas and Alpha Trust go up and down completely randomly.
Pair Corralation between Iktinos Hellas and Alpha Trust
Assuming the 90 days trading horizon Iktinos Hellas SA is expected to under-perform the Alpha Trust. In addition to that, Iktinos Hellas is 2.42 times more volatile than Alpha Trust Mutual. It trades about -0.04 of its total potential returns per unit of risk. Alpha Trust Mutual is currently generating about 0.15 per unit of volatility. If you would invest 442.00 in Alpha Trust Mutual on August 27, 2024 and sell it today you would earn a total of 432.00 from holding Alpha Trust Mutual or generate 97.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iktinos Hellas SA vs. Alpha Trust Mutual
Performance |
| Timeline |
| Iktinos Hellas SA |
| Alpha Trust Mutual |
Iktinos Hellas and Alpha Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iktinos Hellas and Alpha Trust
The main advantage of trading using opposite Iktinos Hellas and Alpha Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iktinos Hellas position performs unexpectedly, Alpha Trust 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 Alpha Trust will offset losses from the drop in Alpha Trust's long position.| Iktinos Hellas vs. National Bank of | Iktinos Hellas vs. EL D Mouzakis | Iktinos Hellas vs. Lampsa Hellenic Hotels | Iktinos Hellas vs. Eurobank Ergasias Services |
| Alpha Trust vs. Jumbo SA | Alpha Trust vs. Gr Sarantis SA | Alpha Trust vs. Hellenic Exchanges | Alpha Trust 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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