Correlation Between Ekter SA and Alumil Aluminium
Can any of the company-specific risk be diversified away by investing in both Ekter SA and Alumil Aluminium 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 Ekter SA and Alumil Aluminium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekter SA and Alumil Aluminium Industry, you can compare the effects of market volatilities on Ekter SA and Alumil Aluminium 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 Ekter SA with a short position of Alumil Aluminium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekter SA and Alumil Aluminium.
Diversification Opportunities for Ekter SA and Alumil Aluminium
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ekter and Alumil is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Ekter SA and Alumil Aluminium Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alumil Aluminium Industry and Ekter 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 Ekter SA are associated (or correlated) with Alumil Aluminium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alumil Aluminium Industry has no effect on the direction of Ekter SA i.e., Ekter SA and Alumil Aluminium go up and down completely randomly.
Pair Corralation between Ekter SA and Alumil Aluminium
Assuming the 90 days trading horizon Ekter SA is expected to generate 1.39 times less return on investment than Alumil Aluminium. In addition to that, Ekter SA is 1.43 times more volatile than Alumil Aluminium Industry. It trades about 0.03 of its total potential returns per unit of risk. Alumil Aluminium Industry is currently generating about 0.06 per unit of volatility. If you would invest 209.00 in Alumil Aluminium Industry on September 2, 2024 and sell it today you would earn a total of 187.00 from holding Alumil Aluminium Industry or generate 89.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekter SA vs. Alumil Aluminium Industry
Performance |
| Timeline |
| Ekter SA |
| Alumil Aluminium Industry |
Ekter SA and Alumil Aluminium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekter SA and Alumil Aluminium
The main advantage of trading using opposite Ekter SA and Alumil Aluminium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekter SA position performs unexpectedly, Alumil Aluminium 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 Alumil Aluminium will offset losses from the drop in Alumil Aluminium's long position.| Ekter SA vs. Mytilineos SA | Ekter SA vs. Terna Energy Societe | Ekter SA vs. Greek Organization of | Ekter SA vs. Motor Oil Corinth |
| Alumil Aluminium vs. Hellenic Petroleum SA | Alumil Aluminium vs. Mytilineos SA | Alumil Aluminium vs. GEK TERNA Holdings | Alumil Aluminium vs. Aegean Airlines 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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