Correlation Between Athens General and N Leventeris
Can any of the company-specific risk be diversified away by investing in both Athens General and N Leventeris 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 N Leventeris 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 N Leventeris SA, you can compare the effects of market volatilities on Athens General and N Leventeris 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 N Leventeris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athens General and N Leventeris.
Diversification Opportunities for Athens General and N Leventeris
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Athens and LEBEP is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Athens General Composite and N Leventeris SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N Leventeris 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 N Leventeris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N Leventeris SA has no effect on the direction of Athens General i.e., Athens General and N Leventeris go up and down completely randomly.
Pair Corralation between Athens General and N Leventeris
Assuming the 90 days trading horizon Athens General Composite is expected to under-perform the N Leventeris. But the index apears to be less risky and, when comparing its historical volatility, Athens General Composite is 8.54 times less risky than N Leventeris. The index trades about -0.03 of its potential returns per unit of risk. The N Leventeris SA is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 23.00 in N Leventeris SA on August 28, 2024 and sell it today you would earn a total of 11.00 from holding N Leventeris SA or generate 47.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athens General Composite vs. N Leventeris SA
Performance |
| Timeline |
Athens General and N Leventeris Volatility Contrast
Predicted Return Density |
| Returns |
Athens General Composite
Pair trading matchups for Athens General
N Leventeris SA
Pair trading matchups for N Leventeris
Pair Trading with Athens General and N Leventeris
The main advantage of trading using opposite Athens General and N Leventeris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athens General position performs unexpectedly, N Leventeris 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 N Leventeris will offset losses from the drop in N Leventeris' long position.| Athens General vs. Technical Olympic SA | Athens General vs. Profile Systems Software | Athens General vs. Piraeus Financial Holdings | Athens General vs. Logismos Information Systems |
| N Leventeris vs. Intracom Holdings SA | N Leventeris vs. Public Power | N Leventeris vs. Hellenic Petroleum SA | N Leventeris 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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