Correlation Between Iktinos Hellas and CPI Computer
Can any of the company-specific risk be diversified away by investing in both Iktinos Hellas and CPI Computer 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 CPI Computer 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 CPI Computer Peripherals, you can compare the effects of market volatilities on Iktinos Hellas and CPI Computer 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 CPI Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iktinos Hellas and CPI Computer.
Diversification Opportunities for Iktinos Hellas and CPI Computer
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Iktinos and CPI is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Iktinos Hellas SA and CPI Computer Peripherals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPI Computer Peripherals 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 CPI Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPI Computer Peripherals has no effect on the direction of Iktinos Hellas i.e., Iktinos Hellas and CPI Computer go up and down completely randomly.
Pair Corralation between Iktinos Hellas and CPI Computer
Assuming the 90 days trading horizon Iktinos Hellas SA is expected to generate 0.93 times more return on investment than CPI Computer. However, Iktinos Hellas SA is 1.07 times less risky than CPI Computer. It trades about -0.06 of its potential returns per unit of risk. CPI Computer Peripherals is currently generating about -0.1 per unit of risk. If you would invest 36.00 in Iktinos Hellas SA on January 19, 2025 and sell it today you would lose (2.00) from holding Iktinos Hellas SA or give up 5.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iktinos Hellas SA vs. CPI Computer Peripherals
Performance |
| Timeline |
| Iktinos Hellas SA |
| CPI Computer Peripherals |
Iktinos Hellas and CPI Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iktinos Hellas and CPI Computer
The main advantage of trading using opposite Iktinos Hellas and CPI Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iktinos Hellas position performs unexpectedly, CPI Computer 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 CPI Computer will offset losses from the drop in CPI Computer'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 |
| CPI Computer vs. Aegean Airlines SA | CPI Computer vs. Foodlink AE | CPI Computer vs. Sidma SA Steel | CPI Computer vs. Hellenic Telecommunications Organization |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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