Correlation Between Kri Kri and Greek Organization
Can any of the company-specific risk be diversified away by investing in both Kri Kri and Greek Organization 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 Kri Kri and Greek Organization into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kri Kri Milk Industry and Greek Organization of, you can compare the effects of market volatilities on Kri Kri and Greek Organization 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 Kri Kri with a short position of Greek Organization. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kri Kri and Greek Organization.
Diversification Opportunities for Kri Kri and Greek Organization
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kri and Greek is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kri Kri Milk Industry and Greek Organization of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greek Organization and Kri Kri 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 Kri Kri Milk Industry are associated (or correlated) with Greek Organization. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greek Organization has no effect on the direction of Kri Kri i.e., Kri Kri and Greek Organization go up and down completely randomly.
Pair Corralation between Kri Kri and Greek Organization
Assuming the 90 days trading horizon Kri Kri Milk Industry is expected to generate 1.24 times more return on investment than Greek Organization. However, Kri Kri is 1.24 times more volatile than Greek Organization of. It trades about 0.13 of its potential returns per unit of risk. Greek Organization of is currently generating about 0.06 per unit of risk. If you would invest 630.00 in Kri Kri Milk Industry on November 5, 2024 and sell it today you would earn a total of 975.00 from holding Kri Kri Milk Industry or generate 154.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kri Kri Milk Industry vs. Greek Organization of
Performance |
| Timeline |
| Kri Kri Milk |
| Greek Organization |
Kri Kri and Greek Organization Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kri Kri and Greek Organization
The main advantage of trading using opposite Kri Kri and Greek Organization positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kri Kri position performs unexpectedly, Greek Organization 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 Greek Organization will offset losses from the drop in Greek Organization's long position.| Kri Kri vs. Motor Oil Corinth | Kri Kri vs. Mytilineos SA | Kri Kri vs. Gr Sarantis SA | Kri Kri vs. Aegean Airlines SA |
| Greek Organization vs. Mytilineos SA | Greek Organization vs. Hellenic Telecommunications Organization | Greek Organization vs. Motor Oil Corinth | Greek Organization vs. Alpha Services and |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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