Correlation Between As Commercial and IKloukinas ILappas
Can any of the company-specific risk be diversified away by investing in both As Commercial and IKloukinas ILappas 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 As Commercial and IKloukinas ILappas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between As Commercial Industrial and IKloukinas ILappas SA, you can compare the effects of market volatilities on As Commercial and IKloukinas ILappas 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 As Commercial with a short position of IKloukinas ILappas. Check out your portfolio center. Please also check ongoing floating volatility patterns of As Commercial and IKloukinas ILappas.
Diversification Opportunities for As Commercial and IKloukinas ILappas
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ASCO and IKloukinas is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding As Commercial Industrial and IKloukinas ILappas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IKloukinas ILappas and As Commercial 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 As Commercial Industrial are associated (or correlated) with IKloukinas ILappas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IKloukinas ILappas has no effect on the direction of As Commercial i.e., As Commercial and IKloukinas ILappas go up and down completely randomly.
Pair Corralation between As Commercial and IKloukinas ILappas
Assuming the 90 days trading horizon As Commercial Industrial is expected to generate 0.74 times more return on investment than IKloukinas ILappas. However, As Commercial Industrial is 1.34 times less risky than IKloukinas ILappas. It trades about 0.03 of its potential returns per unit of risk. IKloukinas ILappas SA is currently generating about -0.03 per unit of risk. If you would invest 259.00 in As Commercial Industrial on September 3, 2024 and sell it today you would earn a total of 11.00 from holding As Commercial Industrial or generate 4.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
As Commercial Industrial vs. IKloukinas ILappas SA
Performance |
| Timeline |
| As Commercial Industrial |
| IKloukinas ILappas |
As Commercial and IKloukinas ILappas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with As Commercial and IKloukinas ILappas
The main advantage of trading using opposite As Commercial and IKloukinas ILappas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if As Commercial position performs unexpectedly, IKloukinas ILappas 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 IKloukinas ILappas will offset losses from the drop in IKloukinas ILappas' long position.| As Commercial vs. Autohellas SA | As Commercial vs. BriQ Properties Real | As Commercial vs. Thrace Plastics Holding | As Commercial vs. Kri Kri Milk Industry |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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