Correlation Between Iktinos Hellas and Avax SA
Can any of the company-specific risk be diversified away by investing in both Iktinos Hellas and Avax SA 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 Avax SA 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 Avax SA, you can compare the effects of market volatilities on Iktinos Hellas and Avax SA 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 Avax SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iktinos Hellas and Avax SA.
Diversification Opportunities for Iktinos Hellas and Avax SA
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Iktinos and Avax is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Iktinos Hellas SA and Avax SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avax SA 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 Avax SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avax SA has no effect on the direction of Iktinos Hellas i.e., Iktinos Hellas and Avax SA go up and down completely randomly.
Pair Corralation between Iktinos Hellas and Avax SA
Assuming the 90 days trading horizon Iktinos Hellas SA is expected to under-perform the Avax SA. In addition to that, Iktinos Hellas is 1.35 times more volatile than Avax SA. It trades about 0.0 of its total potential returns per unit of risk. Avax SA is currently generating about 0.06 per unit of volatility. If you would invest 138.00 in Avax SA on September 19, 2024 and sell it today you would earn a total of 17.00 from holding Avax SA or generate 12.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Iktinos Hellas SA vs. Avax SA
Performance |
| Timeline |
| Iktinos Hellas SA |
| Avax SA |
Iktinos Hellas and Avax SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iktinos Hellas and Avax SA
The main advantage of trading using opposite Iktinos Hellas and Avax SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iktinos Hellas position performs unexpectedly, Avax SA 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 Avax SA will offset losses from the drop in Avax SA's 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 |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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