Correlation Between CNL Capital and Mytilineos
Can any of the company-specific risk be diversified away by investing in both CNL Capital and Mytilineos 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 CNL Capital and Mytilineos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNL Capital EKES AIFM and Mytilineos SA, you can compare the effects of market volatilities on CNL Capital and Mytilineos 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 CNL Capital with a short position of Mytilineos. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNL Capital and Mytilineos.
Diversification Opportunities for CNL Capital and Mytilineos
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between CNL and Mytilineos is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding CNL Capital EKES AIFM and Mytilineos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mytilineos SA and CNL Capital 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 CNL Capital EKES AIFM are associated (or correlated) with Mytilineos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mytilineos SA has no effect on the direction of CNL Capital i.e., CNL Capital and Mytilineos go up and down completely randomly.
Pair Corralation between CNL Capital and Mytilineos
Assuming the 90 days trading horizon CNL Capital EKES AIFM is expected to generate 0.99 times more return on investment than Mytilineos. However, CNL Capital EKES AIFM is 1.01 times less risky than Mytilineos. It trades about 0.14 of its potential returns per unit of risk. Mytilineos SA is currently generating about -0.06 per unit of risk. If you would invest 690.00 in CNL Capital EKES AIFM on September 5, 2024 and sell it today you would earn a total of 35.00 from holding CNL Capital EKES AIFM or generate 5.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CNL Capital EKES AIFM vs. Mytilineos SA
Performance |
| Timeline |
| CNL Capital EKES |
| Mytilineos SA |
CNL Capital and Mytilineos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNL Capital and Mytilineos
The main advantage of trading using opposite CNL Capital and Mytilineos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNL Capital position performs unexpectedly, Mytilineos 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 Mytilineos will offset losses from the drop in Mytilineos' long position.The idea behind CNL Capital EKES AIFM and Mytilineos SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Mytilineos vs. National Bank of | Mytilineos vs. EL D Mouzakis | Mytilineos vs. Lampsa Hellenic Hotels | Mytilineos vs. N Leventeris SA |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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