Correlation Between Daios Plastics and Marfin Investment
Can any of the company-specific risk be diversified away by investing in both Daios Plastics and Marfin Investment 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 Daios Plastics and Marfin Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daios Plastics SA and Marfin Investment Group, you can compare the effects of market volatilities on Daios Plastics and Marfin Investment 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 Daios Plastics with a short position of Marfin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daios Plastics and Marfin Investment.
Diversification Opportunities for Daios Plastics and Marfin Investment
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Daios and Marfin is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Daios Plastics SA and Marfin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marfin Investment and Daios Plastics 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 Daios Plastics SA are associated (or correlated) with Marfin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marfin Investment has no effect on the direction of Daios Plastics i.e., Daios Plastics and Marfin Investment go up and down completely randomly.
Pair Corralation between Daios Plastics and Marfin Investment
Assuming the 90 days trading horizon Daios Plastics SA is expected to generate 0.7 times more return on investment than Marfin Investment. However, Daios Plastics SA is 1.44 times less risky than Marfin Investment. It trades about 0.02 of its potential returns per unit of risk. Marfin Investment Group is currently generating about -0.03 per unit of risk. If you would invest 314.00 in Daios Plastics SA on November 5, 2024 and sell it today you would earn a total of 26.00 from holding Daios Plastics SA or generate 8.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daios Plastics SA vs. Marfin Investment Group
Performance |
| Timeline |
| Daios Plastics SA |
| Marfin Investment |
Daios Plastics and Marfin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daios Plastics and Marfin Investment
The main advantage of trading using opposite Daios Plastics and Marfin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daios Plastics position performs unexpectedly, Marfin Investment 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 Marfin Investment will offset losses from the drop in Marfin Investment's long position.| Daios Plastics vs. Ktima Kostas Lazaridis | Daios Plastics vs. Centric Holdings SA | Daios Plastics vs. As Commercial Industrial |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |