Correlation Between CPI Computer and Kekrops SA
Can any of the company-specific risk be diversified away by investing in both CPI Computer and Kekrops 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 CPI Computer and Kekrops SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CPI Computer Peripherals and Kekrops SA, you can compare the effects of market volatilities on CPI Computer and Kekrops 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 CPI Computer with a short position of Kekrops SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPI Computer and Kekrops SA.
Diversification Opportunities for CPI Computer and Kekrops SA
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CPI and Kekrops is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding CPI Computer Peripherals and Kekrops SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kekrops SA and CPI Computer 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 CPI Computer Peripherals are associated (or correlated) with Kekrops SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kekrops SA has no effect on the direction of CPI Computer i.e., CPI Computer and Kekrops SA go up and down completely randomly.
Pair Corralation between CPI Computer and Kekrops SA
Assuming the 90 days trading horizon CPI Computer Peripherals is expected to under-perform the Kekrops SA. But the stock apears to be less risky and, when comparing its historical volatility, CPI Computer Peripherals is 1.15 times less risky than Kekrops SA. The stock trades about -0.01 of its potential returns per unit of risk. The Kekrops SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 124.00 in Kekrops SA on August 31, 2024 and sell it today you would lose (4.00) from holding Kekrops SA or give up 3.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.66% |
| Values | Daily Returns |
CPI Computer Peripherals vs. Kekrops SA
Performance |
| Timeline |
| CPI Computer Peripherals |
| Kekrops SA |
CPI Computer and Kekrops SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CPI Computer and Kekrops SA
The main advantage of trading using opposite CPI Computer and Kekrops SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CPI Computer position performs unexpectedly, Kekrops 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 Kekrops SA will offset losses from the drop in Kekrops SA's long position.| CPI Computer vs. Hellenic Telecommunications Organization | CPI Computer vs. General Commercial Industrial | CPI Computer vs. Bank of Greece | CPI Computer vs. Karelia Tobacco |
| Kekrops SA vs. Alpha Astika Akinita | Kekrops SA vs. National Bank of | Kekrops SA vs. EL D Mouzakis | Kekrops SA vs. Lampsa Hellenic Hotels |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |