Correlation Between Athens General and Nafpaktos Textile
Can any of the company-specific risk be diversified away by investing in both Athens General and Nafpaktos Textile 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 Nafpaktos Textile 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 Nafpaktos Textile Industry, you can compare the effects of market volatilities on Athens General and Nafpaktos Textile 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 Nafpaktos Textile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athens General and Nafpaktos Textile.
Diversification Opportunities for Athens General and Nafpaktos Textile
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Athens and Nafpaktos is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Athens General Composite and Nafpaktos Textile Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nafpaktos Textile 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 Nafpaktos Textile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nafpaktos Textile has no effect on the direction of Athens General i.e., Athens General and Nafpaktos Textile go up and down completely randomly.
Pair Corralation between Athens General and Nafpaktos Textile
Assuming the 90 days trading horizon Athens General Composite is expected to generate 0.3 times more return on investment than Nafpaktos Textile. However, Athens General Composite is 3.28 times less risky than Nafpaktos Textile. It trades about 0.24 of its potential returns per unit of risk. Nafpaktos Textile Industry is currently generating about -0.12 per unit of risk. If you would invest 139,244 in Athens General Composite on September 19, 2024 and sell it today you would earn a total of 6,036 from holding Athens General Composite or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athens General Composite vs. Nafpaktos Textile Industry
Performance |
| Timeline |
Athens General and Nafpaktos Textile Volatility Contrast
Predicted Return Density |
| Returns |
Athens General Composite
Pair trading matchups for Athens General
Nafpaktos Textile Industry
Pair trading matchups for Nafpaktos Textile
Pair Trading with Athens General and Nafpaktos Textile
The main advantage of trading using opposite Athens General and Nafpaktos Textile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athens General position performs unexpectedly, Nafpaktos Textile 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 Nafpaktos Textile will offset losses from the drop in Nafpaktos Textile's long position.| Athens General vs. Hellenic Telecommunications Organization | Athens General vs. Piraeus Financial Holdings | Athens General vs. Eurobank Ergasias Services |
| Nafpaktos Textile vs. Lanakam SA | Nafpaktos Textile vs. Bioter SA | Nafpaktos Textile vs. Avax SA | Nafpaktos Textile 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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