Correlation Between Elton International and Flexopack Socit
Can any of the company-specific risk be diversified away by investing in both Elton International and Flexopack Socit 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 Flexopack Socit 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 Flexopack Socit Anonyme, you can compare the effects of market volatilities on Elton International and Flexopack Socit 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 Flexopack Socit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elton International and Flexopack Socit.
Diversification Opportunities for Elton International and Flexopack Socit
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Elton and Flexopack is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Elton International Trading and Flexopack Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flexopack Socit Anonyme 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 Flexopack Socit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flexopack Socit Anonyme has no effect on the direction of Elton International i.e., Elton International and Flexopack Socit go up and down completely randomly.
Pair Corralation between Elton International and Flexopack Socit
Assuming the 90 days trading horizon Elton International Trading is expected to generate 1.8 times more return on investment than Flexopack Socit. However, Elton International is 1.8 times more volatile than Flexopack Socit Anonyme. It trades about -0.14 of its potential returns per unit of risk. Flexopack Socit Anonyme is currently generating about -0.34 per unit of risk. If you would invest 187.00 in Elton International Trading on November 5, 2024 and sell it today you would lose (7.00) from holding Elton International Trading or give up 3.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elton International Trading vs. Flexopack Socit Anonyme
Performance |
| Timeline |
| Elton International |
| Flexopack Socit Anonyme |
Elton International and Flexopack Socit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elton International and Flexopack Socit
The main advantage of trading using opposite Elton International and Flexopack Socit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elton International position performs unexpectedly, Flexopack Socit 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 Flexopack Socit will offset losses from the drop in Flexopack Socit'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 |
| Flexopack Socit vs. Jumbo SA | Flexopack Socit vs. Autohellas SA | Flexopack Socit vs. Thrace Plastics Holding | Flexopack Socit vs. Piraeus Port Authority |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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