Correlation Between Alpha Trust and Intertech

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

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

Diversification Opportunities for Alpha Trust and Intertech

0.65

Correlation Coefficient

Alpha Trust  Intertech

Poor diversification

The 3 months correlation between Alpha and Intertech is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Trust Mutual and Intertech SA Inter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intertech SA Inter and Alpha Trust 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 Alpha Trust Mutual are associated (or correlated) with Intertech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intertech SA Inter has no effect on the direction of Alpha Trust i.e., Alpha Trust and Intertech go up and down completely randomly.

Pair Corralation between Alpha Trust and Intertech

Assuming the 90 days trading horizon Alpha Trust is expected to generate 4.12 times less return on investment than Intertech. But when comparing it to its historical volatility, Alpha Trust Mutual is 2.04 times less risky than Intertech. It trades about 0.15 of its potential returns per unit of risk. Intertech SA Inter is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest  117.00  in Intertech SA Inter on April 27, 2025 and sell it today you would earn a total of  41.00  from holding Intertech SA Inter or generate 35.04% return on investment over 90 days.

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

Alpha Trust Mutual  vs.  Intertech SA Inter

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.

Intertech SA Inter

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intertech SA Inter are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Intertech sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Alpha Trust and Intertech

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

The idea behind Alpha Trust Mutual and Intertech SA Inter 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.