Correlation Between Elton International and Technical Olympic
Can any of the company-specific risk be diversified away by investing in both Elton International and Technical Olympic 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 Technical Olympic 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 Technical Olympic SA, you can compare the effects of market volatilities on Elton International and Technical Olympic 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 Technical Olympic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elton International and Technical Olympic.
Diversification Opportunities for Elton International and Technical Olympic
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elton and Technical is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Elton International Trading and Technical Olympic SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technical Olympic 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 Technical Olympic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technical Olympic has no effect on the direction of Elton International i.e., Elton International and Technical Olympic go up and down completely randomly.
Pair Corralation between Elton International and Technical Olympic
Assuming the 90 days trading horizon Elton International Trading is expected to generate 1.52 times more return on investment than Technical Olympic. However, Elton International is 1.52 times more volatile than Technical Olympic SA. It trades about 0.23 of its potential returns per unit of risk. Technical Olympic SA is currently generating about -0.09 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elton International Trading vs. Technical Olympic SA
Performance |
| Timeline |
| Elton International |
| Technical Olympic |
Elton International and Technical Olympic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elton International and Technical Olympic
The main advantage of trading using opposite Elton International and Technical Olympic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elton International position performs unexpectedly, Technical Olympic 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 Technical Olympic will offset losses from the drop in Technical Olympic'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 |
| Technical Olympic vs. General Commercial Industrial | Technical Olympic vs. Piraeus Financial Holdings | Technical Olympic vs. Athens Medical CSA | Technical Olympic vs. Elvalhalcor Hellenic Copper |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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