Correlation Between Hellenic Telecommunicatio and General Commercial
Can any of the company-specific risk be diversified away by investing in both Hellenic Telecommunicatio and General Commercial 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 General Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hellenic Telecommunications Organization and General Commercial Industrial, you can compare the effects of market volatilities on Hellenic Telecommunicatio and General Commercial 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 General Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hellenic Telecommunicatio and General Commercial.
Diversification Opportunities for Hellenic Telecommunicatio and General Commercial
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hellenic and General is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hellenic Telecommunications Or and General Commercial Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Commercial 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 Organization are associated (or correlated) with General Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Commercial has no effect on the direction of Hellenic Telecommunicatio i.e., Hellenic Telecommunicatio and General Commercial go up and down completely randomly.
Pair Corralation between Hellenic Telecommunicatio and General Commercial
Assuming the 90 days trading horizon Hellenic Telecommunicatio is expected to generate 3.13 times less return on investment than General Commercial. But when comparing it to its historical volatility, Hellenic Telecommunications Organization is 1.55 times less risky than General Commercial. It trades about 0.09 of its potential returns per unit of risk. General Commercial Industrial is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 144.00 in General Commercial Industrial on November 27, 2024 and sell it today you would earn a total of 11.00 from holding General Commercial Industrial or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hellenic Telecommunications Or vs. General Commercial Industrial
Performance |
| Timeline |
| Hellenic Telecommunicatio |
| General Commercial |
Hellenic Telecommunicatio and General Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hellenic Telecommunicatio and General Commercial
The main advantage of trading using opposite Hellenic Telecommunicatio and General Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hellenic Telecommunicatio position performs unexpectedly, General Commercial 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 General Commercial will offset losses from the drop in General Commercial's long position.| Hellenic Telecommunicatio vs. Greek Organization of | Hellenic Telecommunicatio vs. Mytilineos SA | Hellenic Telecommunicatio vs. Public Power | Hellenic Telecommunicatio vs. Motor Oil Corinth |
| General Commercial vs. Ekter SA | General Commercial vs. Elton International Trading | General Commercial vs. Piraeus Port Authority | General Commercial vs. Hellenic Petroleum 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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