Correlation Between Iktinos Hellas and Alpha Services
Can any of the company-specific risk be diversified away by investing in both Iktinos Hellas and Alpha Services 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 Iktinos Hellas and Alpha Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iktinos Hellas SA and Alpha Services and, you can compare the effects of market volatilities on Iktinos Hellas and Alpha Services 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 Iktinos Hellas with a short position of Alpha Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iktinos Hellas and Alpha Services.
Diversification Opportunities for Iktinos Hellas and Alpha Services
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iktinos and Alpha is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Iktinos Hellas SA and Alpha Services and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Services and Iktinos Hellas 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 Iktinos Hellas SA are associated (or correlated) with Alpha Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Services has no effect on the direction of Iktinos Hellas i.e., Iktinos Hellas and Alpha Services go up and down completely randomly.
Pair Corralation between Iktinos Hellas and Alpha Services
Assuming the 90 days trading horizon Iktinos Hellas is expected to generate 8.56 times less return on investment than Alpha Services. In addition to that, Iktinos Hellas is 1.58 times more volatile than Alpha Services and. It trades about 0.01 of its total potential returns per unit of risk. Alpha Services and is currently generating about 0.19 per unit of volatility. If you would invest 137.00 in Alpha Services and on August 31, 2024 and sell it today you would earn a total of 11.00 from holding Alpha Services and or generate 8.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iktinos Hellas SA vs. Alpha Services and
Performance |
| Timeline |
| Iktinos Hellas SA |
| Alpha Services |
Iktinos Hellas and Alpha Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iktinos Hellas and Alpha Services
The main advantage of trading using opposite Iktinos Hellas and Alpha Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iktinos Hellas position performs unexpectedly, Alpha Services 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 Alpha Services will offset losses from the drop in Alpha Services' long position.| Iktinos Hellas vs. Hellenic Petroleum SA | Iktinos Hellas vs. Motor Oil Corinth | Iktinos Hellas vs. Hellenic Exchanges | Iktinos Hellas vs. Athens Water Supply |
| Alpha Services vs. Piraeus Financial Holdings | Alpha Services vs. Eurobank Ergasias Services | Alpha Services vs. National Bank of | Alpha Services vs. Greek Organization of |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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