Correlation Between Lampsa Hellenic and LAMDA Development
Can any of the company-specific risk be diversified away by investing in both Lampsa Hellenic and LAMDA Development 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 LAMDA Development 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 LAMDA Development SA, you can compare the effects of market volatilities on Lampsa Hellenic and LAMDA Development 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 LAMDA Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lampsa Hellenic and LAMDA Development.
Diversification Opportunities for Lampsa Hellenic and LAMDA Development
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lampsa and LAMDA is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Lampsa Hellenic Hotels and LAMDA Development SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LAMDA Development 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 LAMDA Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LAMDA Development has no effect on the direction of Lampsa Hellenic i.e., Lampsa Hellenic and LAMDA Development go up and down completely randomly.
Pair Corralation between Lampsa Hellenic and LAMDA Development
Assuming the 90 days trading horizon Lampsa Hellenic Hotels is expected to generate 0.11 times more return on investment than LAMDA Development. However, Lampsa Hellenic Hotels is 8.95 times less risky than LAMDA Development. It trades about 0.0 of its potential returns per unit of risk. LAMDA Development SA is currently generating about -0.08 per unit of risk. If you would invest 3,740 in Lampsa Hellenic Hotels on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Lampsa Hellenic Hotels or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lampsa Hellenic Hotels vs. LAMDA Development SA
Performance |
| Timeline |
| Lampsa Hellenic Hotels |
| LAMDA Development |
Lampsa Hellenic and LAMDA Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lampsa Hellenic and LAMDA Development
The main advantage of trading using opposite Lampsa Hellenic and LAMDA Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lampsa Hellenic position performs unexpectedly, LAMDA Development 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 LAMDA Development will offset losses from the drop in LAMDA Development's long position.| Lampsa Hellenic vs. National Bank of | Lampsa Hellenic vs. N Leventeris SA | Lampsa Hellenic vs. Eurobank Ergasias Services | Lampsa Hellenic vs. Vogiatzoglou Systems SA |
| LAMDA Development vs. National Bank of | LAMDA Development vs. N Leventeris SA | LAMDA Development vs. Eurobank Ergasias Services | LAMDA Development vs. Vogiatzoglou Systems 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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