Correlation Between Athens Medical and Emporiki Eisagogiki
Can any of the company-specific risk be diversified away by investing in both Athens Medical and Emporiki Eisagogiki 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 Athens Medical and Emporiki Eisagogiki into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athens Medical CSA and Emporiki Eisagogiki Aftokiniton, you can compare the effects of market volatilities on Athens Medical and Emporiki Eisagogiki 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 Athens Medical with a short position of Emporiki Eisagogiki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athens Medical and Emporiki Eisagogiki.
Diversification Opportunities for Athens Medical and Emporiki Eisagogiki
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Athens and Emporiki is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Athens Medical CSA and Emporiki Eisagogiki Aftokinito in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emporiki Eisagogiki and Athens Medical 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 Athens Medical CSA are associated (or correlated) with Emporiki Eisagogiki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emporiki Eisagogiki has no effect on the direction of Athens Medical i.e., Athens Medical and Emporiki Eisagogiki go up and down completely randomly.
Pair Corralation between Athens Medical and Emporiki Eisagogiki
Assuming the 90 days trading horizon Athens Medical is expected to generate 2.31 times less return on investment than Emporiki Eisagogiki. But when comparing it to its historical volatility, Athens Medical CSA is 1.3 times less risky than Emporiki Eisagogiki. It trades about 0.02 of its potential returns per unit of risk. Emporiki Eisagogiki Aftokiniton is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 197.00 in Emporiki Eisagogiki Aftokiniton on September 2, 2024 and sell it today you would earn a total of 63.00 from holding Emporiki Eisagogiki Aftokiniton or generate 31.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athens Medical CSA vs. Emporiki Eisagogiki Aftokinito
Performance |
| Timeline |
| Athens Medical CSA |
| Emporiki Eisagogiki |
Athens Medical and Emporiki Eisagogiki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athens Medical and Emporiki Eisagogiki
The main advantage of trading using opposite Athens Medical and Emporiki Eisagogiki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athens Medical position performs unexpectedly, Emporiki Eisagogiki 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 Emporiki Eisagogiki will offset losses from the drop in Emporiki Eisagogiki's long position.| Athens Medical vs. Hellenic Exchanges | Athens Medical vs. Hellenic Telecommunications Organization | Athens Medical vs. GEK TERNA Holdings | Athens Medical vs. Piraeus Port Authority |
| Emporiki Eisagogiki vs. National Bank of | Emporiki Eisagogiki vs. Eurobank Ergasias Services | Emporiki Eisagogiki vs. Vogiatzoglou Systems SA | Emporiki Eisagogiki vs. Alpha Trust Mutual |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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