Correlation Between Hellenic Petroleum and Ktima Kostas
Can any of the company-specific risk be diversified away by investing in both Hellenic Petroleum and Ktima Kostas 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 Ktima Kostas 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 Ktima Kostas Lazaridis, you can compare the effects of market volatilities on Hellenic Petroleum and Ktima Kostas 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 Ktima Kostas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hellenic Petroleum and Ktima Kostas.
Diversification Opportunities for Hellenic Petroleum and Ktima Kostas
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hellenic and Ktima is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Hellenic Petroleum SA and Ktima Kostas Lazaridis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ktima Kostas Lazaridis 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 Ktima Kostas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ktima Kostas Lazaridis has no effect on the direction of Hellenic Petroleum i.e., Hellenic Petroleum and Ktima Kostas go up and down completely randomly.
Pair Corralation between Hellenic Petroleum and Ktima Kostas
Assuming the 90 days trading horizon Hellenic Petroleum SA is expected to generate 0.75 times more return on investment than Ktima Kostas. However, Hellenic Petroleum SA is 1.34 times less risky than Ktima Kostas. It trades about 0.05 of its potential returns per unit of risk. Ktima Kostas Lazaridis is currently generating about -0.01 per unit of risk. If you would invest 673.00 in Hellenic Petroleum SA on September 3, 2024 and sell it today you would earn a total of 7.00 from holding Hellenic Petroleum SA or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hellenic Petroleum SA vs. Ktima Kostas Lazaridis
Performance |
| Timeline |
| Hellenic Petroleum |
| Ktima Kostas Lazaridis |
Hellenic Petroleum and Ktima Kostas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hellenic Petroleum and Ktima Kostas
The main advantage of trading using opposite Hellenic Petroleum and Ktima Kostas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hellenic Petroleum position performs unexpectedly, Ktima Kostas 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 Ktima Kostas will offset losses from the drop in Ktima Kostas' 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 |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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