Correlation Between Hellenic Petroleum and Public Power
Can any of the company-specific risk be diversified away by investing in both Hellenic Petroleum and Public Power 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 Public Power 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 Public Power, you can compare the effects of market volatilities on Hellenic Petroleum and Public Power 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 Public Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hellenic Petroleum and Public Power.
Diversification Opportunities for Hellenic Petroleum and Public Power
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hellenic and Public is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Hellenic Petroleum SA and Public Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Power 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 Public Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Power has no effect on the direction of Hellenic Petroleum i.e., Hellenic Petroleum and Public Power go up and down completely randomly.
Pair Corralation between Hellenic Petroleum and Public Power
Assuming the 90 days trading horizon Hellenic Petroleum SA is expected to under-perform the Public Power. But the stock apears to be less risky and, when comparing its historical volatility, Hellenic Petroleum SA is 1.19 times less risky than Public Power. The stock trades about -0.06 of its potential returns per unit of risk. The Public Power is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,191 in Public Power on August 28, 2024 and sell it today you would lose (9.00) from holding Public Power or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Hellenic Petroleum SA vs. Public Power
Performance |
| Timeline |
| Hellenic Petroleum |
| Public Power |
Hellenic Petroleum and Public Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hellenic Petroleum and Public Power
The main advantage of trading using opposite Hellenic Petroleum and Public Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hellenic Petroleum position performs unexpectedly, Public Power 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 Public Power will offset losses from the drop in Public Power'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 |
| Public Power vs. Mytilineos SA | Public Power vs. Greek Organization of | Public Power vs. Hellenic Telecommunications Organization | Public Power 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |