Correlation Between Athens General and Emporiki Eisagogiki
Can any of the company-specific risk be diversified away by investing in both Athens General and Emporiki Eisagogiki 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 Emporiki Eisagogiki 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 Emporiki Eisagogiki Aftokiniton, you can compare the effects of market volatilities on Athens General and Emporiki Eisagogiki 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 Emporiki Eisagogiki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athens General and Emporiki Eisagogiki.
Diversification Opportunities for Athens General and Emporiki Eisagogiki
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Athens and Emporiki is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Athens General Composite and Emporiki Eisagogiki Aftokinito in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emporiki Eisagogiki 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 Emporiki Eisagogiki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emporiki Eisagogiki has no effect on the direction of Athens General i.e., Athens General and Emporiki Eisagogiki go up and down completely randomly.
Pair Corralation between Athens General and Emporiki Eisagogiki
Assuming the 90 days trading horizon Athens General Composite is expected to generate 0.33 times more return on investment than Emporiki Eisagogiki. However, Athens General Composite is 3.04 times less risky than Emporiki Eisagogiki. It trades about 0.05 of its potential returns per unit of risk. Emporiki Eisagogiki Aftokiniton is currently generating about -0.01 per unit of risk. 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athens General Composite vs. Emporiki Eisagogiki Aftokinito
Performance |
| Timeline |
Athens General and Emporiki Eisagogiki Volatility Contrast
Predicted Return Density |
| Returns |
Athens General Composite
Pair trading matchups for Athens General
Emporiki Eisagogiki Aftokiniton
Pair trading matchups for Emporiki Eisagogiki
Pair Trading with Athens General and Emporiki Eisagogiki
The main advantage of trading using opposite Athens General and Emporiki Eisagogiki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athens General position performs unexpectedly, Emporiki Eisagogiki 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 Emporiki Eisagogiki will offset losses from the drop in Emporiki Eisagogiki's 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 |
| Emporiki Eisagogiki vs. National Bank of | Emporiki Eisagogiki vs. Eurobank Ergasias Services | Emporiki Eisagogiki vs. Vogiatzoglou Systems SA | Emporiki Eisagogiki vs. Alpha Trust Mutual |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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