Correlation Between Athens General and Ktima Kostas
Can any of the company-specific risk be diversified away by investing in both Athens General and Ktima Kostas 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 Ktima Kostas 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 Ktima Kostas Lazaridis, you can compare the effects of market volatilities on Athens General and Ktima Kostas 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 Ktima Kostas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athens General and Ktima Kostas.
Diversification Opportunities for Athens General and Ktima Kostas
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Athens and Ktima is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Athens General Composite and Ktima Kostas Lazaridis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ktima Kostas Lazaridis 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 Ktima Kostas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ktima Kostas Lazaridis has no effect on the direction of Athens General i.e., Athens General and Ktima Kostas go up and down completely randomly.
Pair Corralation between Athens General and Ktima Kostas
If you would invest 127,333 in Athens General Composite on September 2, 2024 and sell it today you would earn a total of 12,016 from holding Athens General Composite or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athens General Composite vs. Ktima Kostas Lazaridis
Performance |
| Timeline |
Athens General and Ktima Kostas Volatility Contrast
Predicted Return Density |
| Returns |
Athens General Composite
Pair trading matchups for Athens General
Ktima Kostas Lazaridis
Pair trading matchups for Ktima Kostas
Pair Trading with Athens General and Ktima Kostas
The main advantage of trading using opposite Athens General and Ktima Kostas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athens General position performs unexpectedly, Ktima Kostas 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 Ktima Kostas will offset losses from the drop in Ktima Kostas' long position.| Athens General vs. Foodlink AE | Athens General vs. General Commercial Industrial | Athens General vs. CPI Computer Peripherals | Athens General vs. Optima bank SA |
| Ktima Kostas vs. Marfin Investment Group | Ktima Kostas vs. Performance Technologies SA | Ktima Kostas vs. General Commercial Industrial | Ktima Kostas vs. Aegean Airlines 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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