Correlation Between Flexopack Socit and Elton International
Can any of the company-specific risk be diversified away by investing in both Flexopack Socit and Elton International 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 Elton International 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 Elton International Trading, you can compare the effects of market volatilities on Flexopack Socit and Elton International 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 Elton International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexopack Socit and Elton International.
Diversification Opportunities for Flexopack Socit and Elton International
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Flexopack and Elton is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Flexopack Socit Anonyme and Elton International Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elton International 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 Elton International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elton International has no effect on the direction of Flexopack Socit i.e., Flexopack Socit and Elton International go up and down completely randomly.
Pair Corralation between Flexopack Socit and Elton International
Assuming the 90 days trading horizon Flexopack Socit is expected to generate 2.99 times less return on investment than Elton International. In addition to that, Flexopack Socit is 1.12 times more volatile than Elton International Trading. It trades about 0.02 of its total potential returns per unit of risk. Elton International Trading is currently generating about 0.07 per unit of volatility. If you would invest 172.00 in Elton International Trading on October 26, 2024 and sell it today you would earn a total of 10.00 from holding Elton International Trading or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flexopack Socit Anonyme vs. Elton International Trading
Performance |
| Timeline |
| Flexopack Socit Anonyme |
| Elton International |
Flexopack Socit and Elton International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexopack Socit and Elton International
The main advantage of trading using opposite Flexopack Socit and Elton International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexopack Socit position performs unexpectedly, Elton International 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 Elton International will offset losses from the drop in Elton International'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 |
| Elton International vs. Autohellas SA | Elton International vs. Admie Holding SA | Elton International vs. Hellenic Petroleum SA | Elton International vs. Jumbo 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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