Correlation Between Lampsa Hellenic and Alpha Trust
Can any of the company-specific risk be diversified away by investing in both Lampsa Hellenic 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 Lampsa Hellenic and Alpha Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lampsa Hellenic Hotels and Alpha Trust Andromeda, you can compare the effects of market volatilities on Lampsa Hellenic 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 Lampsa Hellenic with a short position of Alpha Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lampsa Hellenic and Alpha Trust.
Diversification Opportunities for Lampsa Hellenic and Alpha Trust
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lampsa and Alpha is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Lampsa Hellenic Hotels and Alpha Trust Andromeda in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Trust Andromeda and Lampsa Hellenic 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 Lampsa Hellenic Hotels 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 Andromeda has no effect on the direction of Lampsa Hellenic i.e., Lampsa Hellenic and Alpha Trust go up and down completely randomly.
Pair Corralation between Lampsa Hellenic and Alpha Trust
Assuming the 90 days trading horizon Lampsa Hellenic Hotels is expected to generate 0.91 times more return on investment than Alpha Trust. However, Lampsa Hellenic Hotels is 1.1 times less risky than Alpha Trust. It trades about 0.13 of its potential returns per unit of risk. Alpha Trust Andromeda is currently generating about 0.03 per unit of risk. If you would invest 2,048 in Lampsa Hellenic Hotels on August 27, 2024 and sell it today you would earn a total of 1,692 from holding Lampsa Hellenic Hotels or generate 82.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lampsa Hellenic Hotels vs. Alpha Trust Andromeda
Performance |
| Timeline |
| Lampsa Hellenic Hotels |
| Alpha Trust Andromeda |
Lampsa Hellenic and Alpha Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lampsa Hellenic and Alpha Trust
The main advantage of trading using opposite Lampsa Hellenic and Alpha Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lampsa Hellenic 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.| Lampsa Hellenic vs. National Bank of | Lampsa Hellenic vs. N Leventeris SA | Lampsa Hellenic vs. Eurobank Ergasias Services | Lampsa Hellenic vs. Vogiatzoglou Systems SA |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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