Correlation Between Alumil Aluminium and EL D
Can any of the company-specific risk be diversified away by investing in both Alumil Aluminium and EL D 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 Alumil Aluminium and EL D into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alumil Aluminium Industry and EL D Mouzakis, you can compare the effects of market volatilities on Alumil Aluminium and EL D 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 Alumil Aluminium with a short position of EL D. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alumil Aluminium and EL D.
Diversification Opportunities for Alumil Aluminium and EL D
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alumil and MOYZK is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Alumil Aluminium Industry and EL D Mouzakis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EL D Mouzakis and Alumil Aluminium 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 Alumil Aluminium Industry are associated (or correlated) with EL D. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EL D Mouzakis has no effect on the direction of Alumil Aluminium i.e., Alumil Aluminium and EL D go up and down completely randomly.
Pair Corralation between Alumil Aluminium and EL D
Assuming the 90 days trading horizon Alumil Aluminium Industry is expected to generate 0.69 times more return on investment than EL D. However, Alumil Aluminium Industry is 1.46 times less risky than EL D. It trades about 0.08 of its potential returns per unit of risk. EL D Mouzakis is currently generating about 0.01 per unit of risk. If you would invest 280.00 in Alumil Aluminium Industry on September 2, 2024 and sell it today you would earn a total of 116.00 from holding Alumil Aluminium Industry or generate 41.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alumil Aluminium Industry vs. EL D Mouzakis
Performance |
| Timeline |
| Alumil Aluminium Industry |
| EL D Mouzakis |
Alumil Aluminium and EL D Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alumil Aluminium and EL D
The main advantage of trading using opposite Alumil Aluminium and EL D positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alumil Aluminium position performs unexpectedly, EL D 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 EL D will offset losses from the drop in EL D's long position.| Alumil Aluminium vs. Hellenic Petroleum SA | Alumil Aluminium vs. Mytilineos SA | Alumil Aluminium vs. GEK TERNA Holdings | Alumil Aluminium vs. Aegean Airlines SA |
| EL D vs. Alumil Aluminium Industry | EL D vs. Elton International Trading | EL D vs. Ekter SA | EL D vs. Avax SA |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |