Correlation Between Iktinos Hellas and N Leventeris
Can any of the company-specific risk be diversified away by investing in both Iktinos Hellas and N Leventeris 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 N Leventeris 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 N Leventeris SA, you can compare the effects of market volatilities on Iktinos Hellas and N Leventeris 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 N Leventeris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iktinos Hellas and N Leventeris.
Diversification Opportunities for Iktinos Hellas and N Leventeris
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Iktinos and LEBEP is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Iktinos Hellas SA and N Leventeris SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N Leventeris 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 N Leventeris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N Leventeris SA has no effect on the direction of Iktinos Hellas i.e., Iktinos Hellas and N Leventeris go up and down completely randomly.
Pair Corralation between Iktinos Hellas and N Leventeris
Assuming the 90 days trading horizon Iktinos Hellas SA is expected to under-perform the N Leventeris. But the stock apears to be less risky and, when comparing its historical volatility, Iktinos Hellas SA is 2.06 times less risky than N Leventeris. The stock trades about -0.04 of its potential returns per unit of risk. The N Leventeris SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 29.00 in N Leventeris SA on August 27, 2024 and sell it today you would earn a total of 5.00 from holding N Leventeris SA or generate 17.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Iktinos Hellas SA vs. N Leventeris SA
Performance |
| Timeline |
| Iktinos Hellas SA |
| N Leventeris SA |
Iktinos Hellas and N Leventeris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iktinos Hellas and N Leventeris
The main advantage of trading using opposite Iktinos Hellas and N Leventeris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iktinos Hellas position performs unexpectedly, N Leventeris 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 N Leventeris will offset losses from the drop in N Leventeris' 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 |
| N Leventeris vs. Intracom Holdings SA | N Leventeris vs. Public Power | N Leventeris vs. Hellenic Petroleum SA | N Leventeris vs. National Bank 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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