Correlation Between Greek Organization and ALEFARM BREWING
Can any of the company-specific risk be diversified away by investing in both Greek Organization and ALEFARM BREWING 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 Greek Organization and ALEFARM BREWING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greek Organization of and ALEFARM BREWING DK 05, you can compare the effects of market volatilities on Greek Organization and ALEFARM BREWING 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 Greek Organization with a short position of ALEFARM BREWING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greek Organization and ALEFARM BREWING.
Diversification Opportunities for Greek Organization and ALEFARM BREWING
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greek and ALEFARM is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Greek Organization of and ALEFARM BREWING DK 05 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALEFARM BREWING DK and Greek Organization 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 Greek Organization of are associated (or correlated) with ALEFARM BREWING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALEFARM BREWING DK has no effect on the direction of Greek Organization i.e., Greek Organization and ALEFARM BREWING go up and down completely randomly.
Pair Corralation between Greek Organization and ALEFARM BREWING
Assuming the 90 days horizon Greek Organization of is expected to generate 0.55 times more return on investment than ALEFARM BREWING. However, Greek Organization of is 1.82 times less risky than ALEFARM BREWING. It trades about 0.13 of its potential returns per unit of risk. ALEFARM BREWING DK 05 is currently generating about -0.09 per unit of risk. If you would invest 1,495 in Greek Organization of on September 13, 2024 and sell it today you would earn a total of 105.00 from holding Greek Organization of or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greek Organization of vs. ALEFARM BREWING DK 05
Performance |
| Timeline |
| Greek Organization |
| ALEFARM BREWING DK |
Greek Organization and ALEFARM BREWING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greek Organization and ALEFARM BREWING
The main advantage of trading using opposite Greek Organization and ALEFARM BREWING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greek Organization position performs unexpectedly, ALEFARM BREWING 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 ALEFARM BREWING will offset losses from the drop in ALEFARM BREWING's long position.| Greek Organization vs. ALEFARM BREWING DK 05 | Greek Organization vs. Australian Agricultural | Greek Organization vs. Thai Beverage Public | Greek Organization vs. H FARM SPA |
| ALEFARM BREWING vs. Corporate Travel Management | ALEFARM BREWING vs. Sumitomo Rubber Industries | ALEFARM BREWING vs. SANOK RUBBER ZY | ALEFARM BREWING vs. Jupiter Fund Management |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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