Correlation Between Autohellas and Alpha Trust
Can any of the company-specific risk be diversified away by investing in both Autohellas 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 Autohellas and Alpha Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autohellas SA and Alpha Trust Mutual, you can compare the effects of market volatilities on Autohellas 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 Autohellas with a short position of Alpha Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autohellas and Alpha Trust.
Diversification Opportunities for Autohellas and Alpha Trust
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Autohellas and Alpha is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Autohellas 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 Autohellas 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 Autohellas 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 Autohellas i.e., Autohellas and Alpha Trust go up and down completely randomly.
Pair Corralation between Autohellas and Alpha Trust
Assuming the 90 days trading horizon Autohellas SA is expected to generate 9.23 times more return on investment than Alpha Trust. However, Autohellas is 9.23 times more volatile than Alpha Trust Mutual. It trades about 0.03 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 1,088 in Autohellas SA on November 5, 2024 and sell it today you would earn a total of 6.00 from holding Autohellas SA or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Autohellas SA vs. Alpha Trust Mutual
Performance |
| Timeline |
| Autohellas SA |
| Alpha Trust Mutual |
Autohellas and Alpha Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autohellas and Alpha Trust
The main advantage of trading using opposite Autohellas and Alpha Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autohellas 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.| Autohellas vs. Interlife General Insurance | Autohellas vs. Karelia Tobacco | Autohellas vs. Foodlink AE | Autohellas vs. As Commercial Industrial |
| 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 .
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |