Correlation Between Thessaloniki Water and Alpha Astika
Can any of the company-specific risk be diversified away by investing in both Thessaloniki Water and Alpha Astika 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 Thessaloniki Water and Alpha Astika into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thessaloniki Water Supply and Alpha Astika Akinita, you can compare the effects of market volatilities on Thessaloniki Water and Alpha Astika 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 Thessaloniki Water with a short position of Alpha Astika. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thessaloniki Water and Alpha Astika.
Diversification Opportunities for Thessaloniki Water and Alpha Astika
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thessaloniki and Alpha is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Thessaloniki Water Supply and Alpha Astika Akinita in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Astika Akinita and Thessaloniki Water 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 Thessaloniki Water Supply are associated (or correlated) with Alpha Astika. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Astika Akinita has no effect on the direction of Thessaloniki Water i.e., Thessaloniki Water and Alpha Astika go up and down completely randomly.
Pair Corralation between Thessaloniki Water and Alpha Astika
Assuming the 90 days trading horizon Thessaloniki Water Supply is expected to under-perform the Alpha Astika. But the stock apears to be less risky and, when comparing its historical volatility, Thessaloniki Water Supply is 1.8 times less risky than Alpha Astika. The stock trades about -0.01 of its potential returns per unit of risk. The Alpha Astika Akinita is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 622.00 in Alpha Astika Akinita on September 2, 2024 and sell it today you would earn a total of 76.00 from holding Alpha Astika Akinita or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thessaloniki Water Supply vs. Alpha Astika Akinita
Performance |
| Timeline |
| Thessaloniki Water Supply |
| Alpha Astika Akinita |
Thessaloniki Water and Alpha Astika Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thessaloniki Water and Alpha Astika
The main advantage of trading using opposite Thessaloniki Water and Alpha Astika positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thessaloniki Water position performs unexpectedly, Alpha Astika 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 Alpha Astika will offset losses from the drop in Alpha Astika's long position.| Thessaloniki Water vs. Hellenic Petroleum SA | Thessaloniki Water vs. Mytilineos SA | Thessaloniki Water vs. Hellenic Telecommunications Organization | Thessaloniki Water vs. Public Power |
| Alpha Astika vs. National Bank of | Alpha Astika vs. EL D Mouzakis | Alpha Astika vs. Lampsa Hellenic Hotels | Alpha Astika vs. Austriacard Holdings AG |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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