Correlation Between Hellenic Petroleum and Domiki Kritis
Can any of the company-specific risk be diversified away by investing in both Hellenic Petroleum and Domiki Kritis 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 Hellenic Petroleum and Domiki Kritis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hellenic Petroleum SA and Domiki Kritis SA, you can compare the effects of market volatilities on Hellenic Petroleum and Domiki Kritis 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 Hellenic Petroleum with a short position of Domiki Kritis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hellenic Petroleum and Domiki Kritis.
Diversification Opportunities for Hellenic Petroleum and Domiki Kritis
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hellenic and Domiki is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Hellenic Petroleum SA and Domiki Kritis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Domiki Kritis SA and Hellenic Petroleum 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 Hellenic Petroleum SA are associated (or correlated) with Domiki Kritis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Domiki Kritis SA has no effect on the direction of Hellenic Petroleum i.e., Hellenic Petroleum and Domiki Kritis go up and down completely randomly.
Pair Corralation between Hellenic Petroleum and Domiki Kritis
Assuming the 90 days trading horizon Hellenic Petroleum SA is expected to generate 0.36 times more return on investment than Domiki Kritis. However, Hellenic Petroleum SA is 2.8 times less risky than Domiki Kritis. It trades about -0.08 of its potential returns per unit of risk. Domiki Kritis SA is currently generating about -0.09 per unit of risk. If you would invest 699.00 in Hellenic Petroleum SA on August 30, 2024 and sell it today you would lose (26.00) from holding Hellenic Petroleum SA or give up 3.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hellenic Petroleum SA vs. Domiki Kritis SA
Performance |
| Timeline |
| Hellenic Petroleum |
| Domiki Kritis SA |
Hellenic Petroleum and Domiki Kritis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hellenic Petroleum and Domiki Kritis
The main advantage of trading using opposite Hellenic Petroleum and Domiki Kritis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hellenic Petroleum position performs unexpectedly, Domiki Kritis 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 Domiki Kritis will offset losses from the drop in Domiki Kritis' long position.| Hellenic Petroleum vs. Motor Oil Corinth | Hellenic Petroleum vs. Greek Organization of | Hellenic Petroleum vs. Mytilineos SA | Hellenic Petroleum vs. Hellenic Telecommunications Organization |
| Domiki Kritis vs. Intracom Holdings SA | Domiki Kritis vs. Intralot SA Integrated | Domiki Kritis vs. Intracom Constructions Societe | Domiki Kritis vs. Ekter 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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