Correlation Between GEK TERNA and Alumil Aluminium
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By analyzing existing cross correlation between GEK TERNA Holdings and Alumil Aluminium Industry, you can compare the effects of market volatilities on GEK TERNA and Alumil Aluminium 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 GEK TERNA with a short position of Alumil Aluminium. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEK TERNA and Alumil Aluminium.
Diversification Opportunities for GEK TERNA and Alumil Aluminium
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GEK and Alumil is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding GEK TERNA Holdings and Alumil Aluminium Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alumil Aluminium Industry and GEK TERNA 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 GEK TERNA Holdings are associated (or correlated) with Alumil Aluminium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alumil Aluminium Industry has no effect on the direction of GEK TERNA i.e., GEK TERNA and Alumil Aluminium go up and down completely randomly.
Pair Corralation between GEK TERNA and Alumil Aluminium
Assuming the 90 days trading horizon GEK TERNA is expected to generate 3.27 times less return on investment than Alumil Aluminium. But when comparing it to its historical volatility, GEK TERNA Holdings is 2.06 times less risky than Alumil Aluminium. It trades about 0.21 of its potential returns per unit of risk. Alumil Aluminium Industry is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 320.00 in Alumil Aluminium Industry on August 27, 2024 and sell it today you would earn a total of 46.00 from holding Alumil Aluminium Industry or generate 14.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GEK TERNA Holdings vs. Alumil Aluminium Industry
Performance |
| Timeline |
| GEK TERNA Holdings |
| Alumil Aluminium Industry |
GEK TERNA and Alumil Aluminium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEK TERNA and Alumil Aluminium
The main advantage of trading using opposite GEK TERNA and Alumil Aluminium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEK TERNA position performs unexpectedly, Alumil Aluminium 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 Alumil Aluminium will offset losses from the drop in Alumil Aluminium's long position.| GEK TERNA vs. Mytilineos SA | GEK TERNA vs. Terna Energy Societe | GEK TERNA vs. Greek Organization of | GEK TERNA vs. Motor Oil Corinth |
| Alumil Aluminium vs. Hellenic Petroleum SA | Alumil Aluminium vs. Mytilineos SA | Alumil Aluminium vs. GEK TERNA Holdings | Alumil Aluminium vs. Aegean Airlines 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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