Correlation Between AT S and Alpha En

Can any of the company-specific risk be diversified away by investing in both AT S and Alpha En 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 AT S and Alpha En into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AT S Austria and alpha En, you can compare the effects of market volatilities on AT S and Alpha En 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 AT S with a short position of Alpha En. Check out your portfolio center. Please also check ongoing floating volatility patterns of AT S and Alpha En.

Diversification Opportunities for AT S and Alpha En

-0.23

Correlation Coefficient

AT S  Alpha En

Very good diversification

The 3 months correlation between ASAAF and Alpha is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding AT S Austria and alpha En in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on alpha En and AT S 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 AT S Austria are associated (or correlated) with Alpha En. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of alpha En has no effect on the direction of AT S i.e., AT S and Alpha En go up and down completely randomly.

Pair Corralation between AT S and Alpha En

Assuming the 90 days horizon AT S Austria is expected to under-perform the Alpha En. But the pink sheet apears to be less risky and, when comparing its historical volatility, AT S Austria is 2.49 times less risky than Alpha En. The pink sheet trades about -0.09 of its potential returns per unit of risk. The alpha En is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.01  in alpha En on December 28, 2024 and sell it today you would earn a total of  0.01  from holding alpha En or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

AT S Austria  vs.  alpha En

AT S Austria

Risk-Adjusted Performance

Very Weak

Over the last 90 days AT S Austria has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

alpha En

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in alpha En are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Alpha En exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AT S and Alpha En

The main advantage of trading using opposite AT S and Alpha En positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AT S position performs unexpectedly, Alpha En 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 En will offset losses from the drop in Alpha En's long position.

The idea behind AT S Austria and alpha En pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.