Correlation Between Marfin Investment and Alpha Trust
Can any of the company-specific risk be diversified away by investing in both Marfin Investment 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 Marfin Investment and Alpha Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marfin Investment Group and Alpha Trust Andromeda, you can compare the effects of market volatilities on Marfin Investment 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 Marfin Investment with a short position of Alpha Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfin Investment and Alpha Trust.
Diversification Opportunities for Marfin Investment and Alpha Trust
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marfin and Alpha is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Marfin Investment Group 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 Marfin Investment 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 Marfin Investment Group 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 Marfin Investment i.e., Marfin Investment and Alpha Trust go up and down completely randomly.
Pair Corralation between Marfin Investment and Alpha Trust
Assuming the 90 days trading horizon Marfin Investment Group is expected to under-perform the Alpha Trust. In addition to that, Marfin Investment is 3.08 times more volatile than Alpha Trust Andromeda. It trades about -0.02 of its total potential returns per unit of risk. Alpha Trust Andromeda is currently generating about 0.03 per unit of volatility. If you would invest 589.00 in Alpha Trust Andromeda on August 29, 2024 and sell it today you would earn a total of 51.00 from holding Alpha Trust Andromeda or generate 8.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marfin Investment Group vs. Alpha Trust Andromeda
Performance |
| Timeline |
| Marfin Investment |
| Alpha Trust Andromeda |
Marfin Investment and Alpha Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfin Investment and Alpha Trust
The main advantage of trading using opposite Marfin Investment and Alpha Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfin Investment 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.| Marfin Investment vs. Interlife General Insurance | Marfin Investment vs. Karelia Tobacco | Marfin Investment vs. Elton International Trading | Marfin Investment vs. Technical Olympic SA |
| Alpha Trust vs. Aegean Airlines SA | Alpha Trust vs. National Bank of | Alpha Trust vs. Marfin Investment Group | Alpha Trust vs. Optima bank 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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