Correlation Between Athens General and VIS Containers
Can any of the company-specific risk be diversified away by investing in both Athens General and VIS Containers 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 VIS Containers 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 VIS Containers Manufacturing, you can compare the effects of market volatilities on Athens General and VIS Containers 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 VIS Containers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athens General and VIS Containers.
Diversification Opportunities for Athens General and VIS Containers
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Athens and VIS is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Athens General Composite and VIS Containers Manufacturing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIS Containers Manuf 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 VIS Containers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIS Containers Manuf has no effect on the direction of Athens General i.e., Athens General and VIS Containers go up and down completely randomly.
Pair Corralation between Athens General and VIS Containers
Assuming the 90 days trading horizon Athens General is expected to generate 13.93 times less return on investment than VIS Containers. But when comparing it to its historical volatility, Athens General Composite is 2.1 times less risky than VIS Containers. It trades about 0.03 of its potential returns per unit of risk. VIS Containers Manufacturing is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 13.00 in VIS Containers Manufacturing on August 28, 2024 and sell it today you would earn a total of 1.00 from holding VIS Containers Manufacturing or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athens General Composite vs. VIS Containers Manufacturing
Performance |
| Timeline |
Athens General and VIS Containers Volatility Contrast
Predicted Return Density |
| Returns |
Athens General Composite
Pair trading matchups for Athens General
VIS Containers Manufacturing
Pair trading matchups for VIS Containers
Pair Trading with Athens General and VIS Containers
The main advantage of trading using opposite Athens General and VIS Containers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athens General position performs unexpectedly, VIS Containers 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 VIS Containers will offset losses from the drop in VIS Containers' long position.| Athens General vs. Profile Systems Software | Athens General vs. Sidma SA Steel | Athens General vs. Eurobank Ergasias Services | Athens General vs. Elton International Trading |
| VIS Containers vs. Elvalhalcor Hellenic Copper | VIS Containers vs. Thrace Plastics Holding | VIS Containers vs. Piraeus Financial Holdings | VIS Containers vs. CPI Computer Peripherals |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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