Correlation Between Elton International and As Commercial
Can any of the company-specific risk be diversified away by investing in both Elton International and As Commercial 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 Elton International and As Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elton International Trading and As Commercial Industrial, you can compare the effects of market volatilities on Elton International and As Commercial 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 Elton International with a short position of As Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elton International and As Commercial.
Diversification Opportunities for Elton International and As Commercial
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elton and ASCO is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Elton International Trading and As Commercial Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on As Commercial Industrial and Elton International 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 Elton International Trading are associated (or correlated) with As Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of As Commercial Industrial has no effect on the direction of Elton International i.e., Elton International and As Commercial go up and down completely randomly.
Pair Corralation between Elton International and As Commercial
Assuming the 90 days trading horizon Elton International Trading is expected to generate 1.53 times more return on investment than As Commercial. However, Elton International is 1.53 times more volatile than As Commercial Industrial. It trades about 0.23 of its potential returns per unit of risk. As Commercial Industrial is currently generating about 0.13 per unit of risk. If you would invest 172.00 in Elton International Trading on September 2, 2024 and sell it today you would earn a total of 16.00 from holding Elton International Trading or generate 9.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elton International Trading vs. As Commercial Industrial
Performance |
| Timeline |
| Elton International |
| As Commercial Industrial |
Elton International and As Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elton International and As Commercial
The main advantage of trading using opposite Elton International and As Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elton International position performs unexpectedly, As Commercial 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 As Commercial will offset losses from the drop in As Commercial's long position.| Elton International vs. Autohellas SA | Elton International vs. Admie Holding SA | Elton International vs. Hellenic Petroleum SA | Elton International vs. Jumbo SA |
| As Commercial vs. Autohellas SA | As Commercial vs. BriQ Properties Real | As Commercial vs. Thrace Plastics Holding | As Commercial vs. Kri Kri Milk Industry |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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