Correlation Between Elvalhalcor Hellenic and Cenergy Holdings
Can any of the company-specific risk be diversified away by investing in both Elvalhalcor Hellenic and Cenergy Holdings 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 Elvalhalcor Hellenic and Cenergy Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elvalhalcor Hellenic Copper and Cenergy Holdings SA, you can compare the effects of market volatilities on Elvalhalcor Hellenic and Cenergy Holdings 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 Elvalhalcor Hellenic with a short position of Cenergy Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elvalhalcor Hellenic and Cenergy Holdings.
Diversification Opportunities for Elvalhalcor Hellenic and Cenergy Holdings
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Elvalhalcor and Cenergy is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Elvalhalcor Hellenic Copper and Cenergy Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cenergy Holdings and Elvalhalcor Hellenic 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 Elvalhalcor Hellenic Copper are associated (or correlated) with Cenergy Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cenergy Holdings has no effect on the direction of Elvalhalcor Hellenic i.e., Elvalhalcor Hellenic and Cenergy Holdings go up and down completely randomly.
Pair Corralation between Elvalhalcor Hellenic and Cenergy Holdings
Assuming the 90 days trading horizon Elvalhalcor Hellenic is expected to generate 3.11 times less return on investment than Cenergy Holdings. In addition to that, Elvalhalcor Hellenic is 1.09 times more volatile than Cenergy Holdings SA. It trades about 0.03 of its total potential returns per unit of risk. Cenergy Holdings SA is currently generating about 0.1 per unit of volatility. If you would invest 387.00 in Cenergy Holdings SA on November 19, 2024 and sell it today you would earn a total of 559.00 from holding Cenergy Holdings SA or generate 144.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elvalhalcor Hellenic Copper vs. Cenergy Holdings SA
Performance |
| Timeline |
| Elvalhalcor Hellenic |
| Cenergy Holdings |
Elvalhalcor Hellenic and Cenergy Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elvalhalcor Hellenic and Cenergy Holdings
The main advantage of trading using opposite Elvalhalcor Hellenic and Cenergy Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elvalhalcor Hellenic position performs unexpectedly, Cenergy Holdings 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 Cenergy Holdings will offset losses from the drop in Cenergy Holdings' long position.| Elvalhalcor Hellenic vs. Cenergy Holdings SA | Elvalhalcor Hellenic vs. Mytilineos SA | Elvalhalcor Hellenic vs. Viohalco SA | Elvalhalcor Hellenic vs. Motor Oil Corinth |
| Cenergy Holdings vs. General Commercial Industrial | Cenergy Holdings vs. Technical Olympic SA | Cenergy Holdings vs. Sidma SA Steel | Cenergy Holdings vs. Interlife General Insurance |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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