Correlation Between Athens General and Admie Holding
Can any of the company-specific risk be diversified away by investing in both Athens General and Admie Holding 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 Athens General and Admie Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athens General Composite and Admie Holding SA, you can compare the effects of market volatilities on Athens General and Admie Holding 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 Athens General with a short position of Admie Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athens General and Admie Holding.
Diversification Opportunities for Athens General and Admie Holding
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Athens and Admie is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Athens General Composite and Admie Holding SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Admie Holding SA and Athens General 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 Athens General Composite are associated (or correlated) with Admie Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Admie Holding SA has no effect on the direction of Athens General i.e., Athens General and Admie Holding go up and down completely randomly.
Pair Corralation between Athens General and Admie Holding
Assuming the 90 days trading horizon Athens General Composite is expected to under-perform the Admie Holding. But the index apears to be less risky and, when comparing its historical volatility, Athens General Composite is 1.32 times less risky than Admie Holding. The index trades about -0.12 of its potential returns per unit of risk. The Admie Holding SA is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 238.00 in Admie Holding SA on August 28, 2024 and sell it today you would lose (1.00) from holding Admie Holding SA or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athens General Composite vs. Admie Holding SA
Performance |
| Timeline |
Athens General and Admie Holding Volatility Contrast
Predicted Return Density |
| Returns |
Athens General Composite
Pair trading matchups for Athens General
Admie Holding SA
Pair trading matchups for Admie Holding
Pair Trading with Athens General and Admie Holding
The main advantage of trading using opposite Athens General and Admie Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athens General position performs unexpectedly, Admie Holding 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 Admie Holding will offset losses from the drop in Admie Holding's long position.| Athens General vs. Profile Systems Software | Athens General vs. Sidma SA Steel | Athens General vs. Eurobank Ergasias Services | Athens General vs. Elton International Trading |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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