Correlation Between Ellaktor and Cairo Mezz
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By analyzing existing cross correlation between Ellaktor SA and Cairo Mezz PLC, you can compare the effects of market volatilities on Ellaktor and Cairo Mezz 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 Ellaktor with a short position of Cairo Mezz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ellaktor and Cairo Mezz.
Diversification Opportunities for Ellaktor and Cairo Mezz
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ellaktor and Cairo is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Ellaktor SA and Cairo Mezz PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cairo Mezz PLC and Ellaktor 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 Ellaktor SA are associated (or correlated) with Cairo Mezz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cairo Mezz PLC has no effect on the direction of Ellaktor i.e., Ellaktor and Cairo Mezz go up and down completely randomly.
Pair Corralation between Ellaktor and Cairo Mezz
Assuming the 90 days trading horizon Ellaktor is expected to generate 18.26 times less return on investment than Cairo Mezz. But when comparing it to its historical volatility, Ellaktor SA is 1.76 times less risky than Cairo Mezz. It trades about 0.01 of its potential returns per unit of risk. Cairo Mezz PLC is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 9.25 in Cairo Mezz PLC on August 23, 2024 and sell it today you would earn a total of 32.75 from holding Cairo Mezz PLC or generate 354.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ellaktor SA vs. Cairo Mezz PLC
Performance |
| Timeline |
| Ellaktor SA |
| Cairo Mezz PLC |
Ellaktor and Cairo Mezz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ellaktor and Cairo Mezz
The main advantage of trading using opposite Ellaktor and Cairo Mezz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ellaktor position performs unexpectedly, Cairo Mezz 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 Cairo Mezz will offset losses from the drop in Cairo Mezz's long position.| Ellaktor vs. Hellenic Telecommunications Organization | Ellaktor vs. Greek Organization of | Ellaktor vs. Eurobank Ergasias Services | Ellaktor vs. National Bank of |
| Cairo Mezz vs. Eurobank Ergasias Services | Cairo Mezz vs. Public Power | Cairo Mezz vs. Alpha Services and | Cairo Mezz vs. Mytilineos 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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