Correlation Between IKloukinas ILappas and As Commercial
Can any of the company-specific risk be diversified away by investing in both IKloukinas ILappas and As Commercial 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 IKloukinas ILappas and As Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IKloukinas ILappas SA and As Commercial Industrial, you can compare the effects of market volatilities on IKloukinas ILappas and As Commercial 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 IKloukinas ILappas with a short position of As Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of IKloukinas ILappas and As Commercial.
Diversification Opportunities for IKloukinas ILappas and As Commercial
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between IKloukinas and ASCO is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding IKloukinas ILappas SA and As Commercial Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on As Commercial Industrial and IKloukinas ILappas 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 IKloukinas ILappas SA are associated (or correlated) with As Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of As Commercial Industrial has no effect on the direction of IKloukinas ILappas i.e., IKloukinas ILappas and As Commercial go up and down completely randomly.
Pair Corralation between IKloukinas ILappas and As Commercial
Assuming the 90 days trading horizon IKloukinas ILappas SA is expected to generate 1.11 times more return on investment than As Commercial. However, IKloukinas ILappas is 1.11 times more volatile than As Commercial Industrial. It trades about 0.2 of its potential returns per unit of risk. As Commercial Industrial is currently generating about 0.14 per unit of risk. If you would invest 147.00 in IKloukinas ILappas SA on November 30, 2024 and sell it today you would earn a total of 26.00 from holding IKloukinas ILappas SA or generate 17.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IKloukinas ILappas SA vs. As Commercial Industrial
Performance |
| Timeline |
| IKloukinas ILappas |
| As Commercial Industrial |
IKloukinas ILappas and As Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IKloukinas ILappas and As Commercial
The main advantage of trading using opposite IKloukinas ILappas and As Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IKloukinas ILappas position performs unexpectedly, As Commercial 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 As Commercial will offset losses from the drop in As Commercial's long position.| IKloukinas ILappas vs. GEK TERNA Holdings | IKloukinas ILappas vs. Avax SA | IKloukinas ILappas vs. Technical Olympic SA | IKloukinas ILappas vs. Ekter SA |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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