Correlation Between ATHENS INTERNATIONAL and Alpha Trust

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

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

Diversification Opportunities for ATHENS INTERNATIONAL and Alpha Trust

0.36

Correlation Coefficient

ATHENS INTERNATIONAL  Alpha Trust

Weak diversification

The 3 months correlation between ATHENS and Alpha is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding ATHENS INTERNATIONAL AIRPORT and Alpha Trust Andromeda in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Trust Andromeda and ATHENS INTERNATIONAL 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 ATHENS INTERNATIONAL AIRPORT 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 Andromeda has no effect on the direction of ATHENS INTERNATIONAL i.e., ATHENS INTERNATIONAL and Alpha Trust go up and down completely randomly.

Pair Corralation between ATHENS INTERNATIONAL and Alpha Trust

Assuming the 90 days trading horizon ATHENS INTERNATIONAL AIRPORT is expected to generate 1.68 times more return on investment than Alpha Trust. However, ATHENS INTERNATIONAL is 1.68 times more volatile than Alpha Trust Andromeda. It trades about 0.13 of its potential returns per unit of risk. Alpha Trust Andromeda is currently generating about 0.19 per unit of risk. If you would invest  896.00  in ATHENS INTERNATIONAL AIRPORT on April 24, 2025 and sell it today you would earn a total of  100.00  from holding ATHENS INTERNATIONAL AIRPORT or generate 11.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

ATHENS INTERNATIONAL AIRPORT  vs.  Alpha Trust Andromeda

ATHENS INTERNATIONAL

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ATHENS INTERNATIONAL AIRPORT are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, ATHENS INTERNATIONAL may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Alpha Trust Andromeda

Risk-Adjusted Performance

Good

Over the last 90 days Alpha Trust Andromeda has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak basic indicators, Alpha Trust may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with ATHENS INTERNATIONAL and Alpha Trust

The main advantage of trading using opposite ATHENS INTERNATIONAL and Alpha Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATHENS INTERNATIONAL 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.

The idea behind ATHENS INTERNATIONAL AIRPORT and Alpha Trust Andromeda 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.