Correlation Between Karelia Tobacco and Kiriacoulis Mediterranean
Can any of the company-specific risk be diversified away by investing in both Karelia Tobacco and Kiriacoulis Mediterranean 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 Karelia Tobacco and Kiriacoulis Mediterranean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Karelia Tobacco and Kiriacoulis Mediterranean Cruises, you can compare the effects of market volatilities on Karelia Tobacco and Kiriacoulis Mediterranean 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 Karelia Tobacco with a short position of Kiriacoulis Mediterranean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karelia Tobacco and Kiriacoulis Mediterranean.
Diversification Opportunities for Karelia Tobacco and Kiriacoulis Mediterranean
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Karelia and Kiriacoulis is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Karelia Tobacco and Kiriacoulis Mediterranean Crui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kiriacoulis Mediterranean and Karelia Tobacco 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 Karelia Tobacco are associated (or correlated) with Kiriacoulis Mediterranean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kiriacoulis Mediterranean has no effect on the direction of Karelia Tobacco i.e., Karelia Tobacco and Kiriacoulis Mediterranean go up and down completely randomly.
Pair Corralation between Karelia Tobacco and Kiriacoulis Mediterranean
Assuming the 90 days trading horizon Karelia Tobacco is expected to generate 0.49 times more return on investment than Kiriacoulis Mediterranean. However, Karelia Tobacco is 2.03 times less risky than Kiriacoulis Mediterranean. It trades about 0.01 of its potential returns per unit of risk. Kiriacoulis Mediterranean Cruises is currently generating about 0.0 per unit of risk. If you would invest 32,867 in Karelia Tobacco on August 31, 2024 and sell it today you would earn a total of 733.00 from holding Karelia Tobacco or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Karelia Tobacco vs. Kiriacoulis Mediterranean Crui
Performance |
| Timeline |
| Karelia Tobacco |
| Kiriacoulis Mediterranean |
Karelia Tobacco and Kiriacoulis Mediterranean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Karelia Tobacco and Kiriacoulis Mediterranean
The main advantage of trading using opposite Karelia Tobacco and Kiriacoulis Mediterranean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karelia Tobacco position performs unexpectedly, Kiriacoulis Mediterranean 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 Kiriacoulis Mediterranean will offset losses from the drop in Kiriacoulis Mediterranean's long position.| Karelia Tobacco vs. Greek Organization of | Karelia Tobacco vs. Jumbo SA | Karelia Tobacco vs. Mytilineos SA | Karelia Tobacco vs. Motor Oil Corinth |
| Kiriacoulis Mediterranean vs. Autohellas SA | Kiriacoulis Mediterranean vs. BriQ Properties Real | Kiriacoulis Mediterranean vs. Thrace Plastics Holding | Kiriacoulis Mediterranean vs. Kri Kri Milk Industry |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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