Correlation Between Iktinos Hellas and Hellenic Exchanges
Can any of the company-specific risk be diversified away by investing in both Iktinos Hellas and Hellenic Exchanges 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 Hellenic Exchanges 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 Hellenic Exchanges , you can compare the effects of market volatilities on Iktinos Hellas and Hellenic Exchanges 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 Hellenic Exchanges. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iktinos Hellas and Hellenic Exchanges.
Diversification Opportunities for Iktinos Hellas and Hellenic Exchanges
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Iktinos and Hellenic is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Iktinos Hellas SA and Hellenic Exchanges in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hellenic Exchanges 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 Hellenic Exchanges. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hellenic Exchanges has no effect on the direction of Iktinos Hellas i.e., Iktinos Hellas and Hellenic Exchanges go up and down completely randomly.
Pair Corralation between Iktinos Hellas and Hellenic Exchanges
Assuming the 90 days trading horizon Iktinos Hellas SA is expected to under-perform the Hellenic Exchanges. In addition to that, Iktinos Hellas is 1.63 times more volatile than Hellenic Exchanges . It trades about -0.04 of its total potential returns per unit of risk. Hellenic Exchanges is currently generating about -0.01 per unit of volatility. If you would invest 468.00 in Hellenic Exchanges on August 27, 2024 and sell it today you would lose (38.00) from holding Hellenic Exchanges or give up 8.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iktinos Hellas SA vs. Hellenic Exchanges
Performance |
| Timeline |
| Iktinos Hellas SA |
| Hellenic Exchanges |
Iktinos Hellas and Hellenic Exchanges Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iktinos Hellas and Hellenic Exchanges
The main advantage of trading using opposite Iktinos Hellas and Hellenic Exchanges positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iktinos Hellas position performs unexpectedly, Hellenic Exchanges 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 Hellenic Exchanges will offset losses from the drop in Hellenic Exchanges' long position.| Iktinos Hellas vs. National Bank of | Iktinos Hellas vs. EL D Mouzakis | Iktinos Hellas vs. Lampsa Hellenic Hotels | Iktinos Hellas vs. Eurobank Ergasias Services |
| Hellenic Exchanges vs. Jumbo SA | Hellenic Exchanges vs. Gr Sarantis SA | Hellenic Exchanges vs. Aegean Airlines SA | Hellenic Exchanges vs. Motor Oil Corinth |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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