Correlation Between Athens General and Piraeus Port
Can any of the company-specific risk be diversified away by investing in both Athens General and Piraeus Port 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 Piraeus Port 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 Piraeus Port Authority, you can compare the effects of market volatilities on Athens General and Piraeus Port 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 Piraeus Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athens General and Piraeus Port.
Diversification Opportunities for Athens General and Piraeus Port
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Athens and Piraeus is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Athens General Composite and Piraeus Port Authority in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piraeus Port Authority 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 Piraeus Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piraeus Port Authority has no effect on the direction of Athens General i.e., Athens General and Piraeus Port go up and down completely randomly.
Pair Corralation between Athens General and Piraeus Port
Assuming the 90 days trading horizon Athens General is expected to generate 15.59 times less return on investment than Piraeus Port. But when comparing it to its historical volatility, Athens General Composite is 2.76 times less risky than Piraeus Port. It trades about 0.05 of its potential returns per unit of risk. Piraeus Port Authority is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,765 in Piraeus Port Authority on September 1, 2024 and sell it today you would earn a total of 370.00 from holding Piraeus Port Authority or generate 13.38% 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. Piraeus Port Authority
Performance |
| Timeline |
Athens General and Piraeus Port Volatility Contrast
Predicted Return Density |
| Returns |
Athens General Composite
Pair trading matchups for Athens General
Piraeus Port Authority
Pair trading matchups for Piraeus Port
Pair Trading with Athens General and Piraeus Port
The main advantage of trading using opposite Athens General and Piraeus Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athens General position performs unexpectedly, Piraeus Port 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 Piraeus Port will offset losses from the drop in Piraeus Port's long position.| Athens General vs. Profile Systems Software | Athens General vs. Eurobank Ergasias Services | Athens General vs. Daios Plastics SA | Athens General vs. Sidma SA Steel |
| Piraeus Port vs. Attica Holdings SA | Piraeus Port vs. Thessaloniki Port Authority | Piraeus Port vs. National Bank of | Piraeus Port vs. EL D Mouzakis |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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