Correlation Between Avax SA and Ekter SA
Can any of the company-specific risk be diversified away by investing in both Avax SA and Ekter SA 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 Avax SA and Ekter SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avax SA and Ekter SA, you can compare the effects of market volatilities on Avax SA and Ekter SA 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 Avax SA with a short position of Ekter SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avax SA and Ekter SA.
Diversification Opportunities for Avax SA and Ekter SA
Very good diversification
The 3 months correlation between Avax and Ekter is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Avax SA and Ekter SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekter SA and Avax SA 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 Avax SA are associated (or correlated) with Ekter SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekter SA has no effect on the direction of Avax SA i.e., Avax SA and Ekter SA go up and down completely randomly.
Pair Corralation between Avax SA and Ekter SA
Assuming the 90 days trading horizon Avax SA is expected to generate 1.87 times less return on investment than Ekter SA. But when comparing it to its historical volatility, Avax SA is 1.41 times less risky than Ekter SA. It trades about 0.06 of its potential returns per unit of risk. Ekter SA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 144.00 in Ekter SA on September 1, 2024 and sell it today you would earn a total of 6.00 from holding Ekter SA or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Avax SA vs. Ekter SA
Performance |
| Timeline |
| Avax SA |
| Ekter SA |
Avax SA and Ekter SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avax SA and Ekter SA
The main advantage of trading using opposite Avax SA and Ekter SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avax SA position performs unexpectedly, Ekter SA 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 Ekter SA will offset losses from the drop in Ekter SA's long position.| Avax SA vs. Ellaktor SA | Avax SA vs. GEK TERNA Holdings | Avax SA vs. LAMDA Development SA | Avax SA vs. Public Power |
| Ekter SA vs. Mytilineos SA | Ekter SA vs. Terna Energy Societe | Ekter SA vs. Greek Organization of | Ekter SA vs. Motor Oil Corinth |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |