Correlation Between Austriacard Holdings and Lampsa Hellenic
Can any of the company-specific risk be diversified away by investing in both Austriacard Holdings and Lampsa Hellenic 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 Austriacard Holdings and Lampsa Hellenic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Austriacard Holdings AG and Lampsa Hellenic Hotels, you can compare the effects of market volatilities on Austriacard Holdings and Lampsa Hellenic 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 Austriacard Holdings with a short position of Lampsa Hellenic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austriacard Holdings and Lampsa Hellenic.
Diversification Opportunities for Austriacard Holdings and Lampsa Hellenic
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Austriacard and Lampsa is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Austriacard Holdings AG and Lampsa Hellenic Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lampsa Hellenic Hotels and Austriacard Holdings 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 Austriacard Holdings AG are associated (or correlated) with Lampsa Hellenic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lampsa Hellenic Hotels has no effect on the direction of Austriacard Holdings i.e., Austriacard Holdings and Lampsa Hellenic go up and down completely randomly.
Pair Corralation between Austriacard Holdings and Lampsa Hellenic
Assuming the 90 days trading horizon Austriacard Holdings AG is expected to under-perform the Lampsa Hellenic. In addition to that, Austriacard Holdings is 7.48 times more volatile than Lampsa Hellenic Hotels. It trades about -0.05 of its total potential returns per unit of risk. Lampsa Hellenic Hotels is currently generating about 0.0 per unit of volatility. If you would invest 3,740 in Lampsa Hellenic Hotels on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Lampsa Hellenic Hotels or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austriacard Holdings AG vs. Lampsa Hellenic Hotels
Performance |
| Timeline |
| Austriacard Holdings |
| Lampsa Hellenic Hotels |
Austriacard Holdings and Lampsa Hellenic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austriacard Holdings and Lampsa Hellenic
The main advantage of trading using opposite Austriacard Holdings and Lampsa Hellenic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austriacard Holdings position performs unexpectedly, Lampsa Hellenic 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 Lampsa Hellenic will offset losses from the drop in Lampsa Hellenic's long position.The idea behind Austriacard Holdings AG and Lampsa Hellenic Hotels 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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Check out your portfolio center.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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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