Correlation Between Titan Cement and Alpha Trust

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

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

Diversification Opportunities for Titan Cement and Alpha Trust

-0.67

Correlation Coefficient

Titan Cement  Alpha Trust

Excellent diversification

The 3 months correlation between Titan and Alpha is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Titan Cement International 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 Titan Cement 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 Titan Cement International 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 Titan Cement i.e., Titan Cement and Alpha Trust go up and down completely randomly.

Pair Corralation between Titan Cement and Alpha Trust

Assuming the 90 days trading horizon Titan Cement International is expected to under-perform the Alpha Trust. In addition to that, Titan Cement is 1.75 times more volatile than Alpha Trust Andromeda. It trades about -0.05 of its total potential returns per unit of risk. Alpha Trust Andromeda is currently generating about 0.15 per unit of volatility. If you would invest  640.00  in Alpha Trust Andromeda on April 22, 2025 and sell it today you would earn a total of  48.00  from holding Alpha Trust Andromeda or generate 7.5% return on investment over 90 days.

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

Titan Cement International  vs.  Alpha Trust Andromeda

Titan Cement Interna

Risk-Adjusted Performance

Very Weak

Over the last 90 days Titan Cement International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Titan Cement is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

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 Titan Cement and Alpha Trust

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

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.