Correlation Between Elvalhalcor Hellenic and Mytilineos
Can any of the company-specific risk be diversified away by investing in both Elvalhalcor Hellenic and Mytilineos 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 Mytilineos 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 Mytilineos SA, you can compare the effects of market volatilities on Elvalhalcor Hellenic and Mytilineos 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 Mytilineos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elvalhalcor Hellenic and Mytilineos.
Diversification Opportunities for Elvalhalcor Hellenic and Mytilineos
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Elvalhalcor and Mytilineos is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Elvalhalcor Hellenic Copper and Mytilineos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mytilineos SA 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 Mytilineos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mytilineos SA has no effect on the direction of Elvalhalcor Hellenic i.e., Elvalhalcor Hellenic and Mytilineos go up and down completely randomly.
Pair Corralation between Elvalhalcor Hellenic and Mytilineos
Assuming the 90 days trading horizon Elvalhalcor Hellenic is expected to generate 2.76 times less return on investment than Mytilineos. In addition to that, Elvalhalcor Hellenic is 1.37 times more volatile than Mytilineos SA. It trades about 0.07 of its total potential returns per unit of risk. Mytilineos SA is currently generating about 0.26 per unit of volatility. If you would invest 3,400 in Mytilineos SA on November 28, 2024 and sell it today you would earn a total of 262.00 from holding Mytilineos SA or generate 7.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elvalhalcor Hellenic Copper vs. Mytilineos SA
Performance |
| Timeline |
| Elvalhalcor Hellenic |
| Mytilineos SA |
Elvalhalcor Hellenic and Mytilineos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elvalhalcor Hellenic and Mytilineos
The main advantage of trading using opposite Elvalhalcor Hellenic and Mytilineos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elvalhalcor Hellenic position performs unexpectedly, Mytilineos 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 Mytilineos will offset losses from the drop in Mytilineos' long position.| Elvalhalcor Hellenic vs. Cenergy Holdings SA | Elvalhalcor Hellenic vs. Mytilineos SA | Elvalhalcor Hellenic vs. Viohalco SA | Elvalhalcor Hellenic vs. Motor Oil Corinth |
| Mytilineos vs. Logismos Information Systems | Mytilineos vs. Athens Medical CSA | Mytilineos vs. Optronics Technologies SA | Mytilineos vs. Bank of Greece |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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