Correlation Between Hellenic Petroleum and Greek Organization
Can any of the company-specific risk be diversified away by investing in both Hellenic Petroleum and Greek Organization 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 Greek Organization 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 Greek Organization of, you can compare the effects of market volatilities on Hellenic Petroleum and Greek Organization 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 Greek Organization. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hellenic Petroleum and Greek Organization.
Diversification Opportunities for Hellenic Petroleum and Greek Organization
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hellenic and Greek is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hellenic Petroleum SA and Greek Organization of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greek Organization 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 Greek Organization. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greek Organization has no effect on the direction of Hellenic Petroleum i.e., Hellenic Petroleum and Greek Organization go up and down completely randomly.
Pair Corralation between Hellenic Petroleum and Greek Organization
Assuming the 90 days trading horizon Hellenic Petroleum SA is expected to under-perform the Greek Organization. In addition to that, Hellenic Petroleum is 1.5 times more volatile than Greek Organization of. It trades about -0.08 of its total potential returns per unit of risk. Greek Organization of is currently generating about 0.06 per unit of volatility. If you would invest 1,515 in Greek Organization of on August 24, 2024 and sell it today you would earn a total of 15.00 from holding Greek Organization of or generate 0.99% 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. Greek Organization of
Performance |
| Timeline |
| Hellenic Petroleum |
| Greek Organization |
Hellenic Petroleum and Greek Organization Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hellenic Petroleum and Greek Organization
The main advantage of trading using opposite Hellenic Petroleum and Greek Organization positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hellenic Petroleum position performs unexpectedly, Greek Organization 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 Greek Organization will offset losses from the drop in Greek Organization's 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 |
| Greek Organization vs. Mytilineos SA | Greek Organization vs. Hellenic Telecommunications Organization | Greek Organization vs. Motor Oil Corinth | Greek Organization vs. Alpha Services and |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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