Correlation Between Ekter SA and Technical Olympic
Can any of the company-specific risk be diversified away by investing in both Ekter SA and Technical Olympic 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 Technical Olympic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekter SA and Technical Olympic SA, you can compare the effects of market volatilities on Ekter SA and Technical Olympic 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 Technical Olympic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekter SA and Technical Olympic.
Diversification Opportunities for Ekter SA and Technical Olympic
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ekter and Technical is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ekter SA and Technical Olympic SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technical Olympic 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 Technical Olympic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technical Olympic has no effect on the direction of Ekter SA i.e., Ekter SA and Technical Olympic go up and down completely randomly.
Pair Corralation between Ekter SA and Technical Olympic
Assuming the 90 days trading horizon Ekter SA is expected to generate 2.17 times more return on investment than Technical Olympic. However, Ekter SA is 2.17 times more volatile than Technical Olympic SA. It trades about 0.03 of its potential returns per unit of risk. Technical Olympic SA is currently generating about 0.04 per unit of risk. If you would invest 127.00 in Ekter SA on September 3, 2024 and sell it today you would earn a total of 23.00 from holding Ekter SA or generate 18.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekter SA vs. Technical Olympic SA
Performance |
| Timeline |
| Ekter SA |
| Technical Olympic |
Ekter SA and Technical Olympic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekter SA and Technical Olympic
The main advantage of trading using opposite Ekter SA and Technical Olympic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekter SA position performs unexpectedly, Technical Olympic 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 Technical Olympic will offset losses from the drop in Technical Olympic's long position.| Ekter SA vs. GEK TERNA Holdings | Ekter SA vs. Avax SA | Ekter SA vs. Technical Olympic SA | Ekter SA vs. IKloukinas ILappas SA |
| Technical Olympic vs. GEK TERNA Holdings | Technical Olympic vs. Avax SA | Technical Olympic vs. IKloukinas ILappas SA | Technical Olympic vs. Proodeftiki 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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