Correlation Between Gr Sarantis and Alpha Trust

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

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

Diversification Opportunities for Gr Sarantis and Alpha Trust

-0.34

Correlation Coefficient

Gr Sarantis  Alpha Trust

Very good diversification

The 3 months correlation between SAR and Alpha is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Gr Sarantis SA 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 Gr Sarantis 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 Gr Sarantis SA 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 Gr Sarantis i.e., Gr Sarantis and Alpha Trust go up and down completely randomly.

Pair Corralation between Gr Sarantis and Alpha Trust

Assuming the 90 days trading horizon Gr Sarantis is expected to generate 1.03 times less return on investment than Alpha Trust. In addition to that, Gr Sarantis is 2.47 times more volatile than Alpha Trust Mutual. It trades about 0.06 of its total potential returns per unit of risk. Alpha Trust Mutual is currently generating about 0.15 per unit of volatility. If you would invest  816.00  in Alpha Trust Mutual on April 23, 2025 and sell it today you would earn a total of  60.00  from holding Alpha Trust Mutual or generate 7.35% return on investment over 90 days.

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

Gr Sarantis SA  vs.  Alpha Trust Mutual

Gr Sarantis SA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Gr Sarantis SA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Gr Sarantis may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 Gr Sarantis and Alpha Trust

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

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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.