Correlation Between Admie Holding and Performance Technologies
Can any of the company-specific risk be diversified away by investing in both Admie Holding and Performance Technologies 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 Admie Holding and Performance Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Admie Holding SA and Performance Technologies SA, you can compare the effects of market volatilities on Admie Holding and Performance Technologies 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 Admie Holding with a short position of Performance Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Admie Holding and Performance Technologies.
Diversification Opportunities for Admie Holding and Performance Technologies
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Admie and Performance is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Admie Holding SA and Performance Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Technologies and Admie Holding 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 Admie Holding SA are associated (or correlated) with Performance Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Technologies has no effect on the direction of Admie Holding i.e., Admie Holding and Performance Technologies go up and down completely randomly.
Pair Corralation between Admie Holding and Performance Technologies
Assuming the 90 days trading horizon Admie Holding SA is expected to generate 0.5 times more return on investment than Performance Technologies. However, Admie Holding SA is 1.99 times less risky than Performance Technologies. It trades about -0.05 of its potential returns per unit of risk. Performance Technologies SA is currently generating about -0.18 per unit of risk. If you would invest 238.00 in Admie Holding SA on August 27, 2024 and sell it today you would lose (3.00) from holding Admie Holding SA or give up 1.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Admie Holding SA vs. Performance Technologies SA
Performance |
| Timeline |
| Admie Holding SA |
| Performance Technologies |
Admie Holding and Performance Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Admie Holding and Performance Technologies
The main advantage of trading using opposite Admie Holding and Performance Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Admie Holding position performs unexpectedly, Performance Technologies 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 Performance Technologies will offset losses from the drop in Performance Technologies' long position.| Admie Holding vs. Mytilineos SA | Admie Holding vs. Motor Oil Corinth | Admie Holding vs. Hellenic Petroleum SA | Admie Holding vs. National Bank of |
| Performance Technologies vs. Lampsa Hellenic Hotels | Performance Technologies vs. Bank of Greece | Performance Technologies vs. Foodlink AE | Performance Technologies vs. Profile Systems Software |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |