Correlation Between Lampsa Hellenic and E Pairis
Can any of the company-specific risk be diversified away by investing in both Lampsa Hellenic and E Pairis 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 E Pairis 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 E Pairis SA, you can compare the effects of market volatilities on Lampsa Hellenic and E Pairis 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 E Pairis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lampsa Hellenic and E Pairis.
Diversification Opportunities for Lampsa Hellenic and E Pairis
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lampsa and PAIR is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Lampsa Hellenic Hotels and E Pairis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Pairis 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 E Pairis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Pairis SA has no effect on the direction of Lampsa Hellenic i.e., Lampsa Hellenic and E Pairis go up and down completely randomly.
Pair Corralation between Lampsa Hellenic and E Pairis
Assuming the 90 days trading horizon Lampsa Hellenic Hotels is expected to generate 0.04 times more return on investment than E Pairis. However, Lampsa Hellenic Hotels is 26.62 times less risky than E Pairis. It trades about 0.22 of its potential returns per unit of risk. E Pairis SA is currently generating about -0.01 per unit of risk. If you would invest 3,720 in Lampsa Hellenic Hotels on September 3, 2024 and sell it today you would earn a total of 20.00 from holding Lampsa Hellenic Hotels or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Lampsa Hellenic Hotels vs. E Pairis SA
Performance |
| Timeline |
| Lampsa Hellenic Hotels |
| E Pairis SA |
Lampsa Hellenic and E Pairis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lampsa Hellenic and E Pairis
The main advantage of trading using opposite Lampsa Hellenic and E Pairis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lampsa Hellenic position performs unexpectedly, E Pairis 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 E Pairis will offset losses from the drop in E Pairis' long position.| Lampsa Hellenic vs. National Bank of | Lampsa Hellenic vs. EL D Mouzakis | Lampsa Hellenic vs. N Leventeris SA | Lampsa Hellenic vs. Eurobank Ergasias Services |
| E Pairis vs. Logismos Information Systems | E Pairis vs. Sidma SA Steel | E Pairis vs. General Commercial Industrial | E Pairis vs. Intracom Constructions Societe |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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