Correlation Between Alphacentric Hedged and At Equity

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

By analyzing existing cross correlation between Alphacentric Hedged Market and At Equity Income, you can compare the effects of market volatilities on Alphacentric Hedged and At Equity 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 Alphacentric Hedged with a short position of At Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphacentric Hedged and At Equity.

Diversification Opportunities for Alphacentric Hedged and At Equity

0.9

Correlation Coefficient

Alphacentric Hedged  At Equity

Almost no diversification

The 3 months correlation between Alphacentric and AWYIX is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Alphacentric Hedged Market and At Equity Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on At Equity Income and Alphacentric Hedged 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 Alphacentric Hedged Market are associated (or correlated) with At Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of At Equity Income has no effect on the direction of Alphacentric Hedged i.e., Alphacentric Hedged and At Equity go up and down completely randomly.

Pair Corralation between Alphacentric Hedged and At Equity

Assuming the 90 days horizon Alphacentric Hedged Market is expected to generate 0.97 times more return on investment than At Equity. However, Alphacentric Hedged Market is 1.03 times less risky than At Equity. It trades about 0.3 of its potential returns per unit of risk. At Equity Income is currently generating about 0.08 per unit of risk. If you would invest  2,640  in Alphacentric Hedged Market on May 15, 2025 and sell it today you would earn a total of  290.00  from holding Alphacentric Hedged Market or generate 10.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.39%
Values	Daily Returns

Alphacentric Hedged Market  vs.  At Equity Income

Alphacentric Hedged

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Alphacentric Hedged Market are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Alphacentric Hedged may actually be approaching a critical reversion point that can send shares even higher in September 2025.

At Equity Income

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in At Equity Income are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, At Equity is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Alphacentric Hedged and At Equity

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

The idea behind Alphacentric Hedged Market and At Equity Income 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 Anywhere module to track or share privately all of your investments from the convenience of any device.