Correlation Between Hellenic Telecommunicatio and EL D
Can any of the company-specific risk be diversified away by investing in both Hellenic Telecommunicatio 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 Hellenic Telecommunicatio and EL D 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 EL D Mouzakis, you can compare the effects of market volatilities on Hellenic Telecommunicatio 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 Hellenic Telecommunicatio with a short position of EL D. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hellenic Telecommunicatio and EL D.
Diversification Opportunities for Hellenic Telecommunicatio and EL D
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hellenic and MOYZK is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hellenic Telecommunications Or 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 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 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 Hellenic Telecommunicatio i.e., Hellenic Telecommunicatio and EL D go up and down completely randomly.
Pair Corralation between Hellenic Telecommunicatio and EL D
Assuming the 90 days trading horizon Hellenic Telecommunications Organization is expected to under-perform the EL D. But the stock apears to be less risky and, when comparing its historical volatility, Hellenic Telecommunications Organization is 1.93 times less risky than EL D. The stock trades about -0.08 of its potential returns per unit of risk. The EL D Mouzakis is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 65.00 in EL D Mouzakis on October 26, 2024 and sell it today you would earn a total of 1.00 from holding EL D Mouzakis or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hellenic Telecommunications Or vs. EL D Mouzakis
Performance |
| Timeline |
| Hellenic Telecommunicatio |
| EL D Mouzakis |
Hellenic Telecommunicatio and EL D Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hellenic Telecommunicatio and EL D
The main advantage of trading using opposite Hellenic Telecommunicatio and EL D positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hellenic Telecommunicatio 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.| Hellenic Telecommunicatio vs. Greek Organization of | Hellenic Telecommunicatio vs. Mytilineos SA | Hellenic Telecommunicatio vs. Public Power | Hellenic Telecommunicatio vs. Motor Oil Corinth |
| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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