Correlation Between Hellenic Telecommunicatio and SCOR PK
Can any of the company-specific risk be diversified away by investing in both Hellenic Telecommunicatio and SCOR PK 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 Hellenic Telecommunicatio and SCOR PK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hellenic Telecommunications Org and SCOR PK, you can compare the effects of market volatilities on Hellenic Telecommunicatio and SCOR PK 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 Hellenic Telecommunicatio with a short position of SCOR PK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hellenic Telecommunicatio and SCOR PK.
Diversification Opportunities for Hellenic Telecommunicatio and SCOR PK
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hellenic and SCOR is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Hellenic Telecommunications Or and SCOR PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR PK and Hellenic Telecommunicatio 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 Hellenic Telecommunications Org are associated (or correlated) with SCOR PK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR PK has no effect on the direction of Hellenic Telecommunicatio i.e., Hellenic Telecommunicatio and SCOR PK go up and down completely randomly.
Pair Corralation between Hellenic Telecommunicatio and SCOR PK
Assuming the 90 days horizon Hellenic Telecommunications Org is expected to under-perform the SCOR PK. But the pink sheet apears to be less risky and, when comparing its historical volatility, Hellenic Telecommunications Org is 1.2 times less risky than SCOR PK. The pink sheet trades about -0.05 of its potential returns per unit of risk. The SCOR PK is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 210.00 in SCOR PK on September 1, 2024 and sell it today you would earn a total of 39.00 from holding SCOR PK or generate 18.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hellenic Telecommunications Or vs. SCOR PK
Performance |
| Timeline |
| Hellenic Telecommunicatio |
| SCOR PK |
Hellenic Telecommunicatio and SCOR PK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hellenic Telecommunicatio and SCOR PK
The main advantage of trading using opposite Hellenic Telecommunicatio and SCOR PK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hellenic Telecommunicatio position performs unexpectedly, SCOR PK 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 SCOR PK will offset losses from the drop in SCOR PK's long position.| Hellenic Telecommunicatio vs. PCCW Limited | Hellenic Telecommunicatio vs. Telenor ASA ADR | Hellenic Telecommunicatio vs. Orange SA ADR | Hellenic Telecommunicatio vs. Telefonica SA ADR |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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