Correlation Between Alpha Trust and Logismos Information

Can any of the company-specific risk be diversified away by investing in both Alpha Trust and Logismos Information 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 Logismos Information 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 Logismos Information Systems, you can compare the effects of market volatilities on Alpha Trust and Logismos Information 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 Logismos Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpha Trust and Logismos Information.

Diversification Opportunities for Alpha Trust and Logismos Information

-0.46

Correlation Coefficient

Alpha Trust  Logismos Information

Very good diversification

The 3 months correlation between Alpha and Logismos is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Trust Mutual and Logismos Information Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logismos Information 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 Logismos Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logismos Information has no effect on the direction of Alpha Trust i.e., Alpha Trust and Logismos Information go up and down completely randomly.

Pair Corralation between Alpha Trust and Logismos Information

Assuming the 90 days trading horizon Alpha Trust is expected to generate 24.29 times less return on investment than Logismos Information. But when comparing it to its historical volatility, Alpha Trust Mutual is 4.56 times less risky than Logismos Information. It trades about 0.02 of its potential returns per unit of risk. Logismos Information Systems is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  135.00  in Logismos Information Systems on September 15, 2024 and sell it today you would earn a total of  16.00  from holding Logismos Information Systems or generate 11.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Alpha Trust Mutual  vs.  Logismos Information Systems

Alpha Trust Mutual

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Alpha Trust Mutual are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Alpha Trust is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Logismos Information

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Logismos Information Systems are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Logismos Information may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Alpha Trust and Logismos Information

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

The idea behind Alpha Trust Mutual and Logismos Information Systems 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 Transaction History module to view history of all your transactions and understand their impact on performance.