Correlation Between Elton International and IKloukinas ILappas
Can any of the company-specific risk be diversified away by investing in both Elton International and IKloukinas ILappas 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 IKloukinas ILappas 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 IKloukinas ILappas SA, you can compare the effects of market volatilities on Elton International and IKloukinas ILappas 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 IKloukinas ILappas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elton International and IKloukinas ILappas.
Diversification Opportunities for Elton International and IKloukinas ILappas
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elton and IKloukinas is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Elton International Trading and IKloukinas ILappas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IKloukinas ILappas 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 IKloukinas ILappas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IKloukinas ILappas has no effect on the direction of Elton International i.e., Elton International and IKloukinas ILappas go up and down completely randomly.
Pair Corralation between Elton International and IKloukinas ILappas
Assuming the 90 days trading horizon Elton International Trading is expected to under-perform the IKloukinas ILappas. But the stock apears to be less risky and, when comparing its historical volatility, Elton International Trading is 1.28 times less risky than IKloukinas ILappas. The stock trades about -0.02 of its potential returns per unit of risk. The IKloukinas ILappas SA is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 154.00 in IKloukinas ILappas SA on November 3, 2024 and sell it today you would lose (6.00) from holding IKloukinas ILappas SA or give up 3.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Elton International Trading vs. IKloukinas ILappas SA
Performance |
| Timeline |
| Elton International |
| IKloukinas ILappas |
Elton International and IKloukinas ILappas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elton International and IKloukinas ILappas
The main advantage of trading using opposite Elton International and IKloukinas ILappas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elton International position performs unexpectedly, IKloukinas ILappas 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 IKloukinas ILappas will offset losses from the drop in IKloukinas ILappas' long position.| Elton International vs. Autohellas SA | Elton International vs. Admie Holding SA | Elton International vs. Hellenic Petroleum SA | Elton International vs. Jumbo SA |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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