Correlation Between General Commercial and EL D
Can any of the company-specific risk be diversified away by investing in both General Commercial and EL D 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 General Commercial and EL D into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Commercial Industrial and EL D Mouzakis, you can compare the effects of market volatilities on General Commercial and EL D 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 General Commercial with a short position of EL D. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Commercial and EL D.
Diversification Opportunities for General Commercial and EL D
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between General and MOYZK is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding General Commercial Industrial and EL D Mouzakis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EL D Mouzakis and General Commercial 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 General Commercial Industrial are associated (or correlated) with EL D. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EL D Mouzakis has no effect on the direction of General Commercial i.e., General Commercial and EL D go up and down completely randomly.
Pair Corralation between General Commercial and EL D
Assuming the 90 days trading horizon General Commercial Industrial is expected to generate 0.67 times more return on investment than EL D. However, General Commercial Industrial is 1.48 times less risky than EL D. It trades about 0.19 of its potential returns per unit of risk. EL D Mouzakis is currently generating about 0.03 per unit of risk. If you would invest 131.00 in General Commercial Industrial on October 26, 2024 and sell it today you would earn a total of 13.00 from holding General Commercial Industrial or generate 9.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Commercial Industrial vs. EL D Mouzakis
Performance |
| Timeline |
| General Commercial |
| EL D Mouzakis |
General Commercial and EL D Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Commercial and EL D
The main advantage of trading using opposite General Commercial and EL D positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Commercial position performs unexpectedly, EL D 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 EL D will offset losses from the drop in EL D's long position.| General Commercial vs. Ekter SA | General Commercial vs. Elton International Trading | General Commercial vs. Piraeus Port Authority | General Commercial vs. Hellenic Petroleum SA |
| EL D vs. Marfin Investment Group | EL D vs. Hellenic Telecommunications Organization | EL D vs. Bank of Greece | EL D vs. General Commercial Industrial |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |