Correlation Between Athens Medical and Vogiatzoglou Systems
Can any of the company-specific risk be diversified away by investing in both Athens Medical and Vogiatzoglou Systems 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 Vogiatzoglou Systems 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 Vogiatzoglou Systems SA, you can compare the effects of market volatilities on Athens Medical and Vogiatzoglou Systems 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 Vogiatzoglou Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athens Medical and Vogiatzoglou Systems.
Diversification Opportunities for Athens Medical and Vogiatzoglou Systems
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Athens and Vogiatzoglou is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Athens Medical CSA and Vogiatzoglou Systems SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vogiatzoglou Systems 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 Vogiatzoglou Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vogiatzoglou Systems has no effect on the direction of Athens Medical i.e., Athens Medical and Vogiatzoglou Systems go up and down completely randomly.
Pair Corralation between Athens Medical and Vogiatzoglou Systems
Assuming the 90 days trading horizon Athens Medical is expected to generate 3.17 times less return on investment than Vogiatzoglou Systems. In addition to that, Athens Medical is 1.02 times more volatile than Vogiatzoglou Systems SA. It trades about 0.03 of its total potential returns per unit of risk. Vogiatzoglou Systems SA is currently generating about 0.08 per unit of volatility. If you would invest 214.00 in Vogiatzoglou Systems SA on September 2, 2024 and sell it today you would earn a total of 6.00 from holding Vogiatzoglou Systems SA or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Athens Medical CSA vs. Vogiatzoglou Systems SA
Performance |
| Timeline |
| Athens Medical CSA |
| Vogiatzoglou Systems |
Athens Medical and Vogiatzoglou Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Athens Medical and Vogiatzoglou Systems
The main advantage of trading using opposite Athens Medical and Vogiatzoglou Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athens Medical position performs unexpectedly, Vogiatzoglou Systems 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 Vogiatzoglou Systems will offset losses from the drop in Vogiatzoglou Systems' 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 |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |