Correlation Between Athens General and Interlife General
Can any of the company-specific risk be diversified away by investing in both Athens General and Interlife General 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 Interlife General 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 Interlife General Insurance, you can compare the effects of market volatilities on Athens General and Interlife General 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 Interlife General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athens General and Interlife General.
Diversification Opportunities for Athens General and Interlife General
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Athens and Interlife is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Athens General Composite and Interlife General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interlife General 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 Interlife General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interlife General has no effect on the direction of Athens General i.e., Athens General and Interlife General go up and down completely randomly.
Pair Corralation between Athens General and Interlife General
Assuming the 90 days trading horizon Athens General Composite is expected to generate 0.67 times more return on investment than Interlife General. However, Athens General Composite is 1.5 times less risky than Interlife General. It trades about 0.05 of its potential returns per unit of risk. Interlife General Insurance is currently generating about 0.0 per unit of risk. If you would invest 126,469 in Athens General Composite on August 24, 2024 and sell it today you would earn a total of 13,294 from holding Athens General Composite or generate 10.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athens General Composite vs. Interlife General Insurance
Performance |
| Timeline |
Athens General and Interlife General Volatility Contrast
Predicted Return Density |
| Returns |
Athens General Composite
Pair trading matchups for Athens General
Interlife General Insurance
Pair trading matchups for Interlife General
Pair Trading with Athens General and Interlife General
The main advantage of trading using opposite Athens General and Interlife General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athens General position performs unexpectedly, Interlife General 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 Interlife General will offset losses from the drop in Interlife General's long position.| Athens General vs. Interlife General Insurance | Athens General vs. CPI Computer Peripherals | Athens General vs. Thrace Plastics Holding | Athens General vs. Marfin Investment Group |
| Interlife General vs. Hellenic Telecommunications Organization | Interlife General vs. Greek Organization of | Interlife General vs. Eurobank Ergasias Services | Interlife General vs. National Bank of |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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