Correlation Between Elton International and N Leventeris
Can any of the company-specific risk be diversified away by investing in both Elton International and N Leventeris 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 N Leventeris 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 N Leventeris SA, you can compare the effects of market volatilities on Elton International and N Leventeris 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 N Leventeris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elton International and N Leventeris.
Diversification Opportunities for Elton International and N Leventeris
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Elton and LEBEP is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Elton International Trading and N Leventeris SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N Leventeris SA 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 N Leventeris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N Leventeris SA has no effect on the direction of Elton International i.e., Elton International and N Leventeris go up and down completely randomly.
Pair Corralation between Elton International and N Leventeris
Assuming the 90 days trading horizon Elton International Trading is expected to generate 0.32 times more return on investment than N Leventeris. However, Elton International Trading is 3.13 times less risky than N Leventeris. It trades about 0.04 of its potential returns per unit of risk. N Leventeris SA is currently generating about -0.01 per unit of risk. If you would invest 178.00 in Elton International Trading on September 3, 2024 and sell it today you would earn a total of 11.00 from holding Elton International Trading or generate 6.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elton International Trading vs. N Leventeris SA
Performance |
| Timeline |
| Elton International |
| N Leventeris SA |
Elton International and N Leventeris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elton International and N Leventeris
The main advantage of trading using opposite Elton International and N Leventeris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elton International position performs unexpectedly, N Leventeris 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 N Leventeris will offset losses from the drop in N Leventeris' long position.| Elton International vs. Autohellas SA | Elton International vs. Admie Holding SA | Elton International vs. Hellenic Petroleum SA | Elton International vs. Jumbo SA |
| N Leventeris vs. Logismos Information Systems | N Leventeris vs. Interlife General Insurance | N Leventeris vs. Hellenic Telecommunications Organization | N Leventeris vs. Performance Technologies SA |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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