Correlation Between Lampsa Hellenic and Avax SA
Can any of the company-specific risk be diversified away by investing in both Lampsa Hellenic and Avax SA 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 Lampsa Hellenic and Avax SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lampsa Hellenic Hotels and Avax SA, you can compare the effects of market volatilities on Lampsa Hellenic and Avax SA 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 Lampsa Hellenic with a short position of Avax SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lampsa Hellenic and Avax SA.
Diversification Opportunities for Lampsa Hellenic and Avax SA
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lampsa and Avax is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Lampsa Hellenic Hotels and Avax SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avax SA and Lampsa Hellenic 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 Lampsa Hellenic Hotels are associated (or correlated) with Avax SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avax SA has no effect on the direction of Lampsa Hellenic i.e., Lampsa Hellenic and Avax SA go up and down completely randomly.
Pair Corralation between Lampsa Hellenic and Avax SA
Assuming the 90 days trading horizon Lampsa Hellenic is expected to generate 9.31 times less return on investment than Avax SA. But when comparing it to its historical volatility, Lampsa Hellenic Hotels is 7.75 times less risky than Avax SA. It trades about 0.06 of its potential returns per unit of risk. Avax SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 148.00 in Avax SA on September 19, 2024 and sell it today you would earn a total of 7.00 from holding Avax SA or generate 4.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Lampsa Hellenic Hotels vs. Avax SA
Performance |
| Timeline |
| Lampsa Hellenic Hotels |
| Avax SA |
Lampsa Hellenic and Avax SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lampsa Hellenic and Avax SA
The main advantage of trading using opposite Lampsa Hellenic and Avax SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lampsa Hellenic position performs unexpectedly, Avax SA 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 Avax SA will offset losses from the drop in Avax SA's long position.| Lampsa Hellenic vs. National Bank of | Lampsa Hellenic vs. Eurobank Ergasias Services | Lampsa Hellenic vs. Alpha Trust Mutual | Lampsa Hellenic vs. Iktinos Hellas 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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