Correlation Between Selected Textiles and Emporiki Eisagogiki
Can any of the company-specific risk be diversified away by investing in both Selected Textiles and Emporiki Eisagogiki 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 Selected Textiles and Emporiki Eisagogiki into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Selected Textiles SA and Emporiki Eisagogiki Aftokiniton, you can compare the effects of market volatilities on Selected Textiles and Emporiki Eisagogiki 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 Selected Textiles with a short position of Emporiki Eisagogiki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Selected Textiles and Emporiki Eisagogiki.
Diversification Opportunities for Selected Textiles and Emporiki Eisagogiki
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Selected and Emporiki is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Selected Textiles SA and Emporiki Eisagogiki Aftokinito in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emporiki Eisagogiki and Selected Textiles 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 Selected Textiles SA are associated (or correlated) with Emporiki Eisagogiki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emporiki Eisagogiki has no effect on the direction of Selected Textiles i.e., Selected Textiles and Emporiki Eisagogiki go up and down completely randomly.
Pair Corralation between Selected Textiles and Emporiki Eisagogiki
Assuming the 90 days trading horizon Selected Textiles SA is expected to generate 3.1 times more return on investment than Emporiki Eisagogiki. However, Selected Textiles is 3.1 times more volatile than Emporiki Eisagogiki Aftokiniton. It trades about 0.86 of its potential returns per unit of risk. Emporiki Eisagogiki Aftokiniton is currently generating about -0.05 per unit of risk. If you would invest 11.00 in Selected Textiles SA on August 28, 2024 and sell it today you would earn a total of 2.00 from holding Selected Textiles SA or generate 18.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 20.0% |
| Values | Daily Returns |
Selected Textiles SA vs. Emporiki Eisagogiki Aftokinito
Performance |
| Timeline |
| Selected Textiles |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| Emporiki Eisagogiki |
Selected Textiles and Emporiki Eisagogiki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Selected Textiles and Emporiki Eisagogiki
The main advantage of trading using opposite Selected Textiles and Emporiki Eisagogiki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Selected Textiles position performs unexpectedly, Emporiki Eisagogiki 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 Emporiki Eisagogiki will offset losses from the drop in Emporiki Eisagogiki's long position.The idea behind Selected Textiles SA and Emporiki Eisagogiki Aftokiniton pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Emporiki Eisagogiki vs. National Bank of | Emporiki Eisagogiki vs. N Leventeris SA | Emporiki Eisagogiki vs. Eurobank Ergasias Services | Emporiki Eisagogiki vs. Vogiatzoglou Systems 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |