Correlation Between Elton International and Ktima Kostas
Can any of the company-specific risk be diversified away by investing in both Elton International and Ktima Kostas 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 Ktima Kostas 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 Ktima Kostas Lazaridis, you can compare the effects of market volatilities on Elton International and Ktima Kostas 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 Ktima Kostas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elton International and Ktima Kostas.
Diversification Opportunities for Elton International and Ktima Kostas
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elton and Ktima is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Elton International Trading and Ktima Kostas Lazaridis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ktima Kostas Lazaridis 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 Ktima Kostas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ktima Kostas Lazaridis has no effect on the direction of Elton International i.e., Elton International and Ktima Kostas go up and down completely randomly.
Pair Corralation between Elton International and Ktima Kostas
Assuming the 90 days trading horizon Elton International is expected to generate 7.38 times less return on investment than Ktima Kostas. But when comparing it to its historical volatility, Elton International Trading is 1.05 times less risky than Ktima Kostas. It trades about 0.02 of its potential returns per unit of risk. Ktima Kostas Lazaridis is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 170.00 in Ktima Kostas Lazaridis on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Ktima Kostas Lazaridis or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elton International Trading vs. Ktima Kostas Lazaridis
Performance |
| Timeline |
| Elton International |
| Ktima Kostas Lazaridis |
Elton International and Ktima Kostas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elton International and Ktima Kostas
The main advantage of trading using opposite Elton International and Ktima Kostas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elton International position performs unexpectedly, Ktima Kostas 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 Ktima Kostas will offset losses from the drop in Ktima Kostas' long position.| Elton International vs. Autohellas SA | Elton International vs. Admie Holding SA | Elton International vs. Hellenic Petroleum SA | Elton International vs. Jumbo SA |
| Ktima Kostas vs. Elton International Trading | Ktima Kostas vs. General Commercial Industrial | Ktima Kostas vs. Aegean Airlines SA | Ktima Kostas vs. As Commercial Industrial |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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