Correlation Between IKloukinas ILappas and Proodeftiki
Can any of the company-specific risk be diversified away by investing in both IKloukinas ILappas and Proodeftiki 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 Proodeftiki 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 Proodeftiki SA, you can compare the effects of market volatilities on IKloukinas ILappas and Proodeftiki 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 Proodeftiki. Check out your portfolio center. Please also check ongoing floating volatility patterns of IKloukinas ILappas and Proodeftiki.
Diversification Opportunities for IKloukinas ILappas and Proodeftiki
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between IKloukinas and Proodeftiki is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding IKloukinas ILappas SA and Proodeftiki SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proodeftiki SA 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 Proodeftiki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proodeftiki SA has no effect on the direction of IKloukinas ILappas i.e., IKloukinas ILappas and Proodeftiki go up and down completely randomly.
Pair Corralation between IKloukinas ILappas and Proodeftiki
Assuming the 90 days trading horizon IKloukinas ILappas is expected to generate 303.22 times less return on investment than Proodeftiki. But when comparing it to its historical volatility, IKloukinas ILappas SA is 7.32 times less risky than Proodeftiki. It trades about 0.0 of its potential returns per unit of risk. Proodeftiki SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 27.00 in Proodeftiki SA on October 23, 2024 and sell it today you would earn a total of 1.00 from holding Proodeftiki SA or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IKloukinas ILappas SA vs. Proodeftiki SA
Performance |
| Timeline |
| IKloukinas ILappas |
| Proodeftiki SA |
IKloukinas ILappas and Proodeftiki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IKloukinas ILappas and Proodeftiki
The main advantage of trading using opposite IKloukinas ILappas and Proodeftiki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IKloukinas ILappas position performs unexpectedly, Proodeftiki 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 Proodeftiki will offset losses from the drop in Proodeftiki's long position.| IKloukinas ILappas vs. Marfin Investment Group | IKloukinas ILappas vs. Elton International Trading | IKloukinas ILappas vs. Thrace Plastics Holding | IKloukinas ILappas vs. Sidma SA Steel |
| Proodeftiki vs. GEK TERNA Holdings | Proodeftiki vs. Avax SA | Proodeftiki vs. Technical Olympic SA | Proodeftiki vs. IKloukinas ILappas SA |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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