Correlation Between Kri Kri and Alpha Trust

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

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

Diversification Opportunities for Kri Kri and Alpha Trust

0.86

Correlation Coefficient

Kri Kri  Alpha Trust

Very poor diversification

The 3 months correlation between Kri and Alpha is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kri Kri Milk Industry 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 Kri Kri 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 Kri Kri Milk Industry 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 Kri Kri i.e., Kri Kri and Alpha Trust go up and down completely randomly.

Pair Corralation between Kri Kri and Alpha Trust

Assuming the 90 days trading horizon Kri Kri Milk Industry is expected to generate 2.09 times more return on investment than Alpha Trust. However, Kri Kri is 2.09 times more volatile than Alpha Trust Andromeda. It trades about 0.22 of its potential returns per unit of risk. Alpha Trust Andromeda is currently generating about 0.15 per unit of risk. If you would invest  1,470  in Kri Kri Milk Industry on April 22, 2025 and sell it today you would earn a total of  370.00  from holding Kri Kri Milk Industry or generate 25.17% return on investment over 90 days.

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

Kri Kri Milk Industry  vs.  Alpha Trust Andromeda

Kri Kri Milk

Risk-Adjusted Performance

Solid

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

Alpha Trust Andromeda

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Alpha Trust Andromeda 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 Kri Kri and Alpha Trust

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

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.