Correlation Between Ktima Kostas and Alpha Trust

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

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

Diversification Opportunities for Ktima Kostas and Alpha Trust

0.81

Correlation Coefficient

Ktima Kostas  Alpha Trust

Very poor diversification

The 3 months correlation between Ktima and Alpha is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ktima Kostas Lazaridis 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 Ktima Kostas 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 Ktima Kostas Lazaridis 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 Ktima Kostas i.e., Ktima Kostas and Alpha Trust go up and down completely randomly.

Pair Corralation between Ktima Kostas and Alpha Trust

Assuming the 90 days trading horizon Ktima Kostas Lazaridis is expected to generate 2.32 times more return on investment than Alpha Trust. However, Ktima Kostas is 2.32 times more volatile than Alpha Trust Andromeda. It trades about 0.09 of its potential returns per unit of risk. Alpha Trust Andromeda is currently generating about 0.14 per unit of risk. If you would invest  198.00  in Ktima Kostas Lazaridis on April 23, 2025 and sell it today you would earn a total of  20.00  from holding Ktima Kostas Lazaridis or generate 10.1% return on investment over 90 days.

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

Ktima Kostas Lazaridis  vs.  Alpha Trust Andromeda

Ktima Kostas Lazaridis

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ktima Kostas Lazaridis are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Ktima Kostas may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 Ktima Kostas and Alpha Trust

The main advantage of trading using opposite Ktima Kostas and Alpha Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ktima Kostas 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 Ktima Kostas Lazaridis 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.