Correlation Between Elvalhalcor Hellenic and Foodlink
Can any of the company-specific risk be diversified away by investing in both Elvalhalcor Hellenic and Foodlink 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 Foodlink 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 Foodlink AE, you can compare the effects of market volatilities on Elvalhalcor Hellenic and Foodlink 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 Foodlink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elvalhalcor Hellenic and Foodlink.
Diversification Opportunities for Elvalhalcor Hellenic and Foodlink
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Elvalhalcor and Foodlink is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Elvalhalcor Hellenic Copper and Foodlink AE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foodlink AE 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 Foodlink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foodlink AE has no effect on the direction of Elvalhalcor Hellenic i.e., Elvalhalcor Hellenic and Foodlink go up and down completely randomly.
Pair Corralation between Elvalhalcor Hellenic and Foodlink
Assuming the 90 days trading horizon Elvalhalcor Hellenic is expected to generate 8.36 times less return on investment than Foodlink. But when comparing it to its historical volatility, Elvalhalcor Hellenic Copper is 1.13 times less risky than Foodlink. It trades about 0.02 of its potential returns per unit of risk. Foodlink AE is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 33.00 in Foodlink AE on August 26, 2024 and sell it today you would earn a total of 3.00 from holding Foodlink AE or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elvalhalcor Hellenic Copper vs. Foodlink AE
Performance |
| Timeline |
| Elvalhalcor Hellenic |
| Foodlink AE |
Elvalhalcor Hellenic and Foodlink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elvalhalcor Hellenic and Foodlink
The main advantage of trading using opposite Elvalhalcor Hellenic and Foodlink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elvalhalcor Hellenic position performs unexpectedly, Foodlink 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 Foodlink will offset losses from the drop in Foodlink's long position.| Elvalhalcor Hellenic vs. Cenergy Holdings SA | Elvalhalcor Hellenic vs. Mytilineos SA | Elvalhalcor Hellenic vs. Viohalco SA | Elvalhalcor Hellenic vs. Motor Oil Corinth |
| Foodlink vs. Frigoglass SAIC | Foodlink vs. Autohellas SA | Foodlink vs. Public Power | Foodlink vs. Intralot SA Integrated |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |