Correlation Between Intralot and Alpha Trust
Can any of the company-specific risk be diversified away by investing in both Intralot 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 Intralot and Alpha Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intralot SA Integrated and Alpha Trust Mutual, you can compare the effects of market volatilities on Intralot 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 Intralot with a short position of Alpha Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intralot and Alpha Trust.
Diversification Opportunities for Intralot and Alpha Trust
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Intralot and Alpha is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Intralot SA Integrated 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 Intralot 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 Intralot SA Integrated 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 Intralot i.e., Intralot and Alpha Trust go up and down completely randomly.
Pair Corralation between Intralot and Alpha Trust
Assuming the 90 days trading horizon Intralot SA Integrated is expected to generate 8.99 times more return on investment than Alpha Trust. However, Intralot is 8.99 times more volatile than Alpha Trust Mutual. It trades about 0.04 of its potential returns per unit of risk. Alpha Trust Mutual is currently generating about 0.09 per unit of risk. If you would invest 105.00 in Intralot SA Integrated on November 5, 2024 and sell it today you would earn a total of 1.00 from holding Intralot SA Integrated or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Intralot SA Integrated vs. Alpha Trust Mutual
Performance |
| Timeline |
| Intralot SA Integrated |
| Alpha Trust Mutual |
Intralot and Alpha Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intralot and Alpha Trust
The main advantage of trading using opposite Intralot and Alpha Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intralot 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.| Intralot vs. Greek Organization of | Intralot vs. Public Power | Intralot vs. Mytilineos SA | Intralot vs. Hellenic Telecommunications Organization |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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