Correlation Between Kordellos and Pipe Works
Can any of the company-specific risk be diversified away by investing in both Kordellos and Pipe Works 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 Kordellos and Pipe Works into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kordellos Ch Bros and Pipe Works L, you can compare the effects of market volatilities on Kordellos and Pipe Works 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 Kordellos with a short position of Pipe Works. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kordellos and Pipe Works.
Diversification Opportunities for Kordellos and Pipe Works
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kordellos and Pipe is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Kordellos Ch Bros and Pipe Works L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pipe Works L and Kordellos 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 Kordellos Ch Bros are associated (or correlated) with Pipe Works. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pipe Works L has no effect on the direction of Kordellos i.e., Kordellos and Pipe Works go up and down completely randomly.
Pair Corralation between Kordellos and Pipe Works
Assuming the 90 days trading horizon Kordellos Ch Bros is expected to under-perform the Pipe Works. In addition to that, Kordellos is 1.19 times more volatile than Pipe Works L. It trades about -0.04 of its total potential returns per unit of risk. Pipe Works L is currently generating about 0.15 per unit of volatility. If you would invest 129.00 in Pipe Works L on August 30, 2024 and sell it today you would earn a total of 15.00 from holding Pipe Works L or generate 11.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Kordellos Ch Bros vs. Pipe Works L
Performance |
| Timeline |
| Kordellos Ch Bros |
| Pipe Works L |
Kordellos and Pipe Works Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kordellos and Pipe Works
The main advantage of trading using opposite Kordellos and Pipe Works positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kordellos position performs unexpectedly, Pipe Works 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 Pipe Works will offset losses from the drop in Pipe Works' long position.| Kordellos vs. Sidma SA Steel | Kordellos vs. Marfin Investment Group | Kordellos vs. General Commercial Industrial | Kordellos vs. Piraeus Financial Holdings |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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