Correlation Between Hellenic Petroleum and Proodeftiki
Can any of the company-specific risk be diversified away by investing in both Hellenic Petroleum and Proodeftiki 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 Proodeftiki 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 Proodeftiki SA, you can compare the effects of market volatilities on Hellenic Petroleum and Proodeftiki 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 Proodeftiki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hellenic Petroleum and Proodeftiki.
Diversification Opportunities for Hellenic Petroleum and Proodeftiki
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hellenic and Proodeftiki is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Hellenic Petroleum SA and Proodeftiki SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proodeftiki 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 Proodeftiki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proodeftiki SA has no effect on the direction of Hellenic Petroleum i.e., Hellenic Petroleum and Proodeftiki go up and down completely randomly.
Pair Corralation between Hellenic Petroleum and Proodeftiki
Assuming the 90 days trading horizon Hellenic Petroleum SA is expected to under-perform the Proodeftiki. But the stock apears to be less risky and, when comparing its historical volatility, Hellenic Petroleum SA is 3.91 times less risky than Proodeftiki. The stock trades about -0.11 of its potential returns per unit of risk. The Proodeftiki SA is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Proodeftiki SA on August 31, 2024 and sell it today you would earn a total of 8.00 from holding Proodeftiki SA or generate 38.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Hellenic Petroleum SA vs. Proodeftiki SA
Performance |
| Timeline |
| Hellenic Petroleum |
| Proodeftiki SA |
Hellenic Petroleum and Proodeftiki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hellenic Petroleum and Proodeftiki
The main advantage of trading using opposite Hellenic Petroleum and Proodeftiki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hellenic Petroleum position performs unexpectedly, Proodeftiki 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 Proodeftiki will offset losses from the drop in Proodeftiki'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 |
| Proodeftiki vs. Marfin Investment Group | Proodeftiki vs. Elvalhalcor Hellenic Copper | Proodeftiki vs. Daios Plastics SA | Proodeftiki vs. Hellenic Telecommunications Organization |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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