Correlation Between Alfa Financial and Amicorp FS

Can any of the company-specific risk be diversified away by investing in both Alfa Financial and Amicorp FS 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 Alfa Financial and Amicorp FS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alfa Financial Software and Amicorp FS PLC, you can compare the effects of market volatilities on Alfa Financial and Amicorp FS 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 Alfa Financial with a short position of Amicorp FS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alfa Financial and Amicorp FS.

Diversification Opportunities for Alfa Financial and Amicorp FS

-0.14

Correlation Coefficient

Alfa Financial  Amicorp FS

Good diversification

The 3 months correlation between Alfa and Amicorp is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Alfa Financial Software and Amicorp FS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amicorp FS PLC and Alfa Financial 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 Alfa Financial Software are associated (or correlated) with Amicorp FS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amicorp FS PLC has no effect on the direction of Alfa Financial i.e., Alfa Financial and Amicorp FS go up and down completely randomly.

Pair Corralation between Alfa Financial and Amicorp FS

Assuming the 90 days trading horizon Alfa Financial Software is expected to generate 3.63 times more return on investment than Amicorp FS. However, Alfa Financial is 3.63 times more volatile than Amicorp FS PLC. It trades about 0.08 of its potential returns per unit of risk. Amicorp FS PLC is currently generating about 0.17 per unit of risk. If you would invest  20,652  in Alfa Financial Software on April 24, 2025 and sell it today you would earn a total of  1,448  from holding Alfa Financial Software or generate 7.01% return on investment over 90 days.

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

Alfa Financial Software  vs.  Amicorp FS PLC

Alfa Financial Software

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Alfa Financial Software are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Alfa Financial may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Amicorp FS PLC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amicorp FS PLC are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Amicorp FS is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Alfa Financial and Amicorp FS

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

The idea behind Alfa Financial Software and Amicorp FS PLC 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.