Correlation Between Autohellas and Alumil Aluminium

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

By analyzing existing cross correlation between Autohellas SA and Alumil Aluminium Industry, you can compare the effects of market volatilities on Autohellas and Alumil Aluminium 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 Autohellas with a short position of Alumil Aluminium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autohellas and Alumil Aluminium.

Diversification Opportunities for Autohellas and Alumil Aluminium

0.34

Correlation Coefficient

Autohellas  Alumil Aluminium

Weak diversification

The 3 months correlation between Autohellas and Alumil is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Autohellas SA and Alumil Aluminium Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alumil Aluminium Industry and Autohellas 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 Autohellas SA are associated (or correlated) with Alumil Aluminium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alumil Aluminium Industry has no effect on the direction of Autohellas i.e., Autohellas and Alumil Aluminium go up and down completely randomly.

Pair Corralation between Autohellas and Alumil Aluminium

Assuming the 90 days trading horizon Autohellas SA is expected to under-perform the Alumil Aluminium. In addition to that, Autohellas is 1.0 times more volatile than Alumil Aluminium Industry. It trades about -0.04 of its total potential returns per unit of risk. Alumil Aluminium Industry is currently generating about -0.02 per unit of volatility. If you would invest  514.00  in Alumil Aluminium Industry on April 23, 2025 and sell it today you would lose (12.00) from holding Alumil Aluminium Industry or give up 2.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Autohellas SA  vs.  Alumil Aluminium Industry

Autohellas SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Autohellas SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Autohellas is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Alumil Aluminium Industry

Risk-Adjusted Performance

Weak

Over the last 90 days Alumil Aluminium Industry has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Alumil Aluminium 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 Autohellas and Alumil Aluminium

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

The idea behind Autohellas SA and Alumil Aluminium Industry 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.