Correlation Between Ekter SA and Hellenic Petroleum
Can any of the company-specific risk be diversified away by investing in both Ekter SA and Hellenic Petroleum 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 Hellenic Petroleum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekter SA and Hellenic Petroleum SA, you can compare the effects of market volatilities on Ekter SA and Hellenic Petroleum 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 Hellenic Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekter SA and Hellenic Petroleum.
Diversification Opportunities for Ekter SA and Hellenic Petroleum
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ekter and Hellenic is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ekter SA and Hellenic Petroleum SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hellenic Petroleum 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 Hellenic Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hellenic Petroleum has no effect on the direction of Ekter SA i.e., Ekter SA and Hellenic Petroleum go up and down completely randomly.
Pair Corralation between Ekter SA and Hellenic Petroleum
Assuming the 90 days trading horizon Ekter SA is expected to generate 2.19 times more return on investment than Hellenic Petroleum. However, Ekter SA is 2.19 times more volatile than Hellenic Petroleum SA. It trades about 0.12 of its potential returns per unit of risk. Hellenic Petroleum SA is currently generating about 0.15 per unit of risk. If you would invest 148.00 in Ekter SA on October 26, 2024 and sell it today you would earn a total of 28.00 from holding Ekter SA or generate 18.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekter SA vs. Hellenic Petroleum SA
Performance |
| Timeline |
| Ekter SA |
| Hellenic Petroleum |
Ekter SA and Hellenic Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekter SA and Hellenic Petroleum
The main advantage of trading using opposite Ekter SA and Hellenic Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekter SA position performs unexpectedly, Hellenic Petroleum 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 Hellenic Petroleum will offset losses from the drop in Hellenic Petroleum's long position.| Ekter SA vs. Admie Holding SA | Ekter SA vs. Thrace Plastics Holding | Ekter SA vs. GEK TERNA Holdings | Ekter SA vs. Hellenic Petroleum SA |
| Hellenic Petroleum vs. Motor Oil Corinth | Hellenic Petroleum vs. Greek Organization of | Hellenic Petroleum vs. Mytilineos SA | Hellenic Petroleum vs. Hellenic Telecommunications Organization |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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