Correlation Between Alpineome Property and AFC Gamma

Can any of the company-specific risk be diversified away by investing in both Alpineome Property and AFC Gamma 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 Alpineome Property and AFC Gamma into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alpineome Property Trust and AFC Gamma, you can compare the effects of market volatilities on Alpineome Property and AFC Gamma 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 Alpineome Property with a short position of AFC Gamma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpineome Property and AFC Gamma.

Diversification Opportunities for Alpineome Property and AFC Gamma

0.73

Correlation Coefficient

Alpineome Property  AFC Gamma

Poor diversification

The 3 months correlation between Alpineome and AFC is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Alpineome Property Trust and AFC Gamma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFC Gamma and Alpineome Property 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 Alpineome Property Trust are associated (or correlated) with AFC Gamma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFC Gamma has no effect on the direction of Alpineome Property i.e., Alpineome Property and AFC Gamma go up and down completely randomly.

Pair Corralation between Alpineome Property and AFC Gamma

Given the investment horizon of 90 days Alpineome Property Trust is expected to generate 0.79 times more return on investment than AFC Gamma. However, Alpineome Property Trust is 1.27 times less risky than AFC Gamma. It trades about -0.12 of its potential returns per unit of risk. AFC Gamma is currently generating about -0.14 per unit of risk. If you would invest  1,755  in Alpineome Property Trust on October 6, 2024 and sell it today you would lose (63.00) from holding Alpineome Property Trust or give up 3.59% of portfolio value over 90 days.

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

Alpineome Property Trust  vs.  AFC Gamma

Alpineome Property Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alpineome Property Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Alpineome Property is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

AFC Gamma

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AFC Gamma has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Alpineome Property and AFC Gamma

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

The idea behind Alpineome Property Trust and AFC Gamma 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.