Correlation Between Ekter SA and Domiki Kritis
Can any of the company-specific risk be diversified away by investing in both Ekter SA and Domiki Kritis 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 Domiki Kritis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekter SA and Domiki Kritis SA, you can compare the effects of market volatilities on Ekter SA and Domiki Kritis 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 Domiki Kritis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekter SA and Domiki Kritis.
Diversification Opportunities for Ekter SA and Domiki Kritis
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ekter and Domiki is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ekter SA and Domiki Kritis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Domiki Kritis SA 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 Domiki Kritis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Domiki Kritis SA has no effect on the direction of Ekter SA i.e., Ekter SA and Domiki Kritis go up and down completely randomly.
Pair Corralation between Ekter SA and Domiki Kritis
Assuming the 90 days trading horizon Ekter SA is expected to generate 3.9 times less return on investment than Domiki Kritis. But when comparing it to its historical volatility, Ekter SA is 1.12 times less risky than Domiki Kritis. It trades about 0.03 of its potential returns per unit of risk. Domiki Kritis SA is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 266.00 in Domiki Kritis SA on August 30, 2024 and sell it today you would earn a total of 21.00 from holding Domiki Kritis SA or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekter SA vs. Domiki Kritis SA
Performance |
| Timeline |
| Ekter SA |
| Domiki Kritis SA |
Ekter SA and Domiki Kritis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekter SA and Domiki Kritis
The main advantage of trading using opposite Ekter SA and Domiki Kritis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekter SA position performs unexpectedly, Domiki Kritis 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 Domiki Kritis will offset losses from the drop in Domiki Kritis' long position.The idea behind Ekter SA and Domiki Kritis 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.| Domiki Kritis vs. Intracom Holdings SA | Domiki Kritis vs. Intralot SA Integrated | Domiki Kritis vs. Intracom Constructions Societe | Domiki Kritis vs. Ekter 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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