Correlation Between As Commercial and Marfin Investment
Can any of the company-specific risk be diversified away by investing in both As Commercial and Marfin Investment 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 Marfin Investment 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 Marfin Investment Group, you can compare the effects of market volatilities on As Commercial and Marfin Investment 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 Marfin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of As Commercial and Marfin Investment.
Diversification Opportunities for As Commercial and Marfin Investment
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ASCO and Marfin is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding As Commercial Industrial and Marfin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marfin Investment 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 Marfin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marfin Investment has no effect on the direction of As Commercial i.e., As Commercial and Marfin Investment go up and down completely randomly.
Pair Corralation between As Commercial and Marfin Investment
Assuming the 90 days trading horizon As Commercial Industrial is expected to generate 0.87 times more return on investment than Marfin Investment. However, As Commercial Industrial is 1.15 times less risky than Marfin Investment. It trades about 0.31 of its potential returns per unit of risk. Marfin Investment Group is currently generating about -0.07 per unit of risk. If you would invest 304.00 in As Commercial Industrial on November 5, 2024 and sell it today you would earn a total of 23.00 from holding As Commercial Industrial or generate 7.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
As Commercial Industrial vs. Marfin Investment Group
Performance |
| Timeline |
| As Commercial Industrial |
| Marfin Investment |
As Commercial and Marfin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with As Commercial and Marfin Investment
The main advantage of trading using opposite As Commercial and Marfin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if As Commercial position performs unexpectedly, Marfin Investment 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 Marfin Investment will offset losses from the drop in Marfin Investment's 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 |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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