Correlation Between Flexopack Socit and Ekter SA
Can any of the company-specific risk be diversified away by investing in both Flexopack Socit and Ekter SA 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 Flexopack Socit and Ekter SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flexopack Socit Anonyme and Ekter SA, you can compare the effects of market volatilities on Flexopack Socit and Ekter SA 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 Flexopack Socit with a short position of Ekter SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexopack Socit and Ekter SA.
Diversification Opportunities for Flexopack Socit and Ekter SA
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Flexopack and Ekter is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Flexopack Socit Anonyme and Ekter SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekter SA and Flexopack Socit 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 Flexopack Socit Anonyme are associated (or correlated) with Ekter SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekter SA has no effect on the direction of Flexopack Socit i.e., Flexopack Socit and Ekter SA go up and down completely randomly.
Pair Corralation between Flexopack Socit and Ekter SA
Assuming the 90 days trading horizon Flexopack Socit is expected to generate 9.38 times less return on investment than Ekter SA. But when comparing it to its historical volatility, Flexopack Socit Anonyme is 1.73 times less risky than Ekter SA. It trades about 0.02 of its potential returns per unit of risk. Ekter SA is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 148.00 in Ekter SA on October 26, 2024 and sell it today you would earn a total of 28.00 from holding Ekter SA or generate 18.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flexopack Socit Anonyme vs. Ekter SA
Performance |
| Timeline |
| Flexopack Socit Anonyme |
| Ekter SA |
Flexopack Socit and Ekter SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexopack Socit and Ekter SA
The main advantage of trading using opposite Flexopack Socit and Ekter SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexopack Socit position performs unexpectedly, Ekter SA 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 Ekter SA will offset losses from the drop in Ekter SA's long position.| Flexopack Socit vs. Jumbo SA | Flexopack Socit vs. Autohellas SA | Flexopack Socit vs. Thrace Plastics Holding | Flexopack Socit vs. Piraeus Port Authority |
| Ekter SA vs. Admie Holding SA | Ekter SA vs. Thrace Plastics Holding | Ekter SA vs. GEK TERNA Holdings | Ekter SA vs. Hellenic Petroleum 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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