Correlation Between Investment Friends and Alior Bank

Can any of the company-specific risk be diversified away by investing in both Investment Friends and Alior Bank 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 Investment Friends and Alior Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Investment Friends Capital and Alior Bank SA, you can compare the effects of market volatilities on Investment Friends and Alior Bank 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 Investment Friends with a short position of Alior Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment Friends and Alior Bank.

Diversification Opportunities for Investment Friends and Alior Bank

0.0

Correlation Coefficient

Investment Friends  Alior Bank

Pay attention - limited upside

The 3 months correlation between Investment and Alior is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Investment Friends Capital and Alior Bank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alior Bank SA and Investment Friends 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 Investment Friends Capital are associated (or correlated) with Alior Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alior Bank SA has no effect on the direction of Investment Friends i.e., Investment Friends and Alior Bank go up and down completely randomly.

Pair Corralation between Investment Friends and Alior Bank

If you would invest  530.00  in Investment Friends Capital on April 24, 2025 and sell it today you would earn a total of  0.00  from holding Investment Friends Capital or generate 0.0% return on investment over 90 days.

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

Investment Friends Capital  vs.  Alior Bank SA

Investment Friends

Risk-Adjusted Performance

Very Weak

Over the last 90 days Investment Friends Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Investment Friends is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Alior Bank SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alior Bank SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Alior Bank is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Investment Friends and Alior Bank

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

The idea behind Investment Friends Capital and Alior Bank SA 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.