Correlation Between LAMDA Development and Alpha Astika
Can any of the company-specific risk be diversified away by investing in both LAMDA Development and Alpha Astika 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 LAMDA Development and Alpha Astika into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LAMDA Development SA and Alpha Astika Akinita, you can compare the effects of market volatilities on LAMDA Development and Alpha Astika 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 LAMDA Development with a short position of Alpha Astika. Check out your portfolio center. Please also check ongoing floating volatility patterns of LAMDA Development and Alpha Astika.
Diversification Opportunities for LAMDA Development and Alpha Astika
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between LAMDA and Alpha is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding LAMDA Development SA and Alpha Astika Akinita in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Astika Akinita and LAMDA Development 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 LAMDA Development SA are associated (or correlated) with Alpha Astika. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Astika Akinita has no effect on the direction of LAMDA Development i.e., LAMDA Development and Alpha Astika go up and down completely randomly.
Pair Corralation between LAMDA Development and Alpha Astika
Assuming the 90 days trading horizon LAMDA Development SA is expected to under-perform the Alpha Astika. In addition to that, LAMDA Development is 1.2 times more volatile than Alpha Astika Akinita. It trades about -0.07 of its total potential returns per unit of risk. Alpha Astika Akinita is currently generating about -0.06 per unit of volatility. If you would invest 710.00 in Alpha Astika Akinita on September 2, 2024 and sell it today you would lose (12.00) from holding Alpha Astika Akinita or give up 1.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LAMDA Development SA vs. Alpha Astika Akinita
Performance |
| Timeline |
| LAMDA Development |
| Alpha Astika Akinita |
LAMDA Development and Alpha Astika Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LAMDA Development and Alpha Astika
The main advantage of trading using opposite LAMDA Development and Alpha Astika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LAMDA Development position performs unexpectedly, Alpha Astika 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 Astika will offset losses from the drop in Alpha Astika's long position.| LAMDA Development vs. Profile Systems Software | LAMDA Development vs. General Commercial Industrial | LAMDA Development vs. Performance Technologies SA | LAMDA Development vs. Karelia Tobacco |
| Alpha Astika vs. National Bank of | Alpha Astika vs. EL D Mouzakis | Alpha Astika vs. Lampsa Hellenic Hotels | Alpha Astika vs. Austriacard Holdings AG |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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