Correlation Between Hellenic Exchanges and Alpha Trust

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

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

Diversification Opportunities for Hellenic Exchanges and Alpha Trust

0.64

Correlation Coefficient

Hellenic Exchanges  Alpha Trust

Poor diversification

The 3 months correlation between Hellenic and Alpha is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Hellenic Exchanges and Alpha Trust Mutual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Trust Mutual and Hellenic Exchanges 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 Hellenic Exchanges 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 Mutual has no effect on the direction of Hellenic Exchanges i.e., Hellenic Exchanges and Alpha Trust go up and down completely randomly.

Pair Corralation between Hellenic Exchanges and Alpha Trust

Assuming the 90 days trading horizon Hellenic Exchanges is expected to generate 2.94 times more return on investment than Alpha Trust. However, Hellenic Exchanges is 2.94 times more volatile than Alpha Trust Mutual. It trades about 0.22 of its potential returns per unit of risk. Alpha Trust Mutual is currently generating about 0.14 per unit of risk. If you would invest  540.00  in Hellenic Exchanges on April 22, 2025 and sell it today you would earn a total of  198.00  from holding Hellenic Exchanges or generate 36.67% return on investment over 90 days.

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

Hellenic Exchanges   vs.  Alpha Trust Mutual

Hellenic Exchanges

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Hellenic Exchanges are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Hellenic Exchanges unveiled solid returns over the last few months and may actually be approaching a breakup point.

Alpha Trust Mutual

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Alpha Trust Mutual are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Alpha Trust may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Hellenic Exchanges and Alpha Trust

The main advantage of trading using opposite Hellenic Exchanges and Alpha Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hellenic Exchanges 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 Hellenic Exchanges and Alpha Trust Mutual 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.