Correlation Between Lampsa Hellenic and Elvalhalcor Hellenic
Can any of the company-specific risk be diversified away by investing in both Lampsa Hellenic and Elvalhalcor Hellenic 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 Elvalhalcor Hellenic 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 Elvalhalcor Hellenic Copper, you can compare the effects of market volatilities on Lampsa Hellenic and Elvalhalcor Hellenic 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 Elvalhalcor Hellenic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lampsa Hellenic and Elvalhalcor Hellenic.
Diversification Opportunities for Lampsa Hellenic and Elvalhalcor Hellenic
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lampsa and Elvalhalcor is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Lampsa Hellenic Hotels and Elvalhalcor Hellenic Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elvalhalcor Hellenic 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 Elvalhalcor Hellenic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elvalhalcor Hellenic has no effect on the direction of Lampsa Hellenic i.e., Lampsa Hellenic and Elvalhalcor Hellenic go up and down completely randomly.
Pair Corralation between Lampsa Hellenic and Elvalhalcor Hellenic
Assuming the 90 days trading horizon Lampsa Hellenic Hotels is expected to generate 0.52 times more return on investment than Elvalhalcor Hellenic. However, Lampsa Hellenic Hotels is 1.93 times less risky than Elvalhalcor Hellenic. It trades about 0.12 of its potential returns per unit of risk. Elvalhalcor Hellenic Copper is currently generating about 0.03 per unit of risk. If you would invest 2,009 in Lampsa Hellenic Hotels on August 30, 2024 and sell it today you would earn a total of 1,731 from holding Lampsa Hellenic Hotels or generate 86.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lampsa Hellenic Hotels vs. Elvalhalcor Hellenic Copper
Performance |
| Timeline |
| Lampsa Hellenic Hotels |
| Elvalhalcor Hellenic |
Lampsa Hellenic and Elvalhalcor Hellenic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lampsa Hellenic and Elvalhalcor Hellenic
The main advantage of trading using opposite Lampsa Hellenic and Elvalhalcor Hellenic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lampsa Hellenic position performs unexpectedly, Elvalhalcor Hellenic 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 Elvalhalcor Hellenic will offset losses from the drop in Elvalhalcor Hellenic's long position.| Lampsa Hellenic vs. National Bank of | Lampsa Hellenic vs. EL D Mouzakis | Lampsa Hellenic vs. Eurobank Ergasias Services | Lampsa Hellenic vs. Alpha Trust Mutual |
| Elvalhalcor Hellenic vs. Cenergy Holdings SA | Elvalhalcor Hellenic vs. Mytilineos SA | Elvalhalcor Hellenic vs. Viohalco SA | Elvalhalcor Hellenic vs. Motor Oil Corinth |
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.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets |