Correlation Between Alpha Trust and Eurobank Ergasias

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

By analyzing existing cross correlation between Alpha Trust Mutual and Eurobank Ergasias Services, you can compare the effects of market volatilities on Alpha Trust and Eurobank Ergasias 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 Alpha Trust with a short position of Eurobank Ergasias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha Trust and Eurobank Ergasias.

Diversification Opportunities for Alpha Trust and Eurobank Ergasias

-0.12

Correlation Coefficient

Alpha Trust  Eurobank Ergasias

Good diversification

The 3 months correlation between Alpha and Eurobank is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Trust Mutual and Eurobank Ergasias Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobank Ergasias and Alpha Trust 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 Alpha Trust Mutual are associated (or correlated) with Eurobank Ergasias. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eurobank Ergasias has no effect on the direction of Alpha Trust i.e., Alpha Trust and Eurobank Ergasias go up and down completely randomly.

Pair Corralation between Alpha Trust and Eurobank Ergasias

Assuming the 90 days trading horizon Alpha Trust is expected to generate 1.09 times less return on investment than Eurobank Ergasias. But when comparing it to its historical volatility, Alpha Trust Mutual is 1.8 times less risky than Eurobank Ergasias. It trades about 0.16 of its potential returns per unit of risk. Eurobank Ergasias Services is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  99.00  in Eurobank Ergasias Services on September 5, 2024 and sell it today you would earn a total of  121.00  from holding Eurobank Ergasias Services or generate 122.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Alpha Trust Mutual  vs.  Eurobank Ergasias Services

Alpha Trust Mutual

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alpha Trust Mutual has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Alpha Trust is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Eurobank Ergasias

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Eurobank Ergasias Services are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Eurobank Ergasias is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Alpha Trust and Eurobank Ergasias

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

The idea behind Alpha Trust Mutual and Eurobank Ergasias Services 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.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..