Correlation Between Lampsa Hellenic and Profile Systems
Can any of the company-specific risk be diversified away by investing in both Lampsa Hellenic and Profile Systems 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 Profile Systems 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 Profile Systems Software, you can compare the effects of market volatilities on Lampsa Hellenic and Profile Systems 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 Profile Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lampsa Hellenic and Profile Systems.
Diversification Opportunities for Lampsa Hellenic and Profile Systems
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lampsa and Profile is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lampsa Hellenic Hotels and Profile Systems Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Profile Systems Software 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 Profile Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Profile Systems Software has no effect on the direction of Lampsa Hellenic i.e., Lampsa Hellenic and Profile Systems go up and down completely randomly.
Pair Corralation between Lampsa Hellenic and Profile Systems
Assuming the 90 days trading horizon Lampsa Hellenic Hotels is expected to generate 0.12 times more return on investment than Profile Systems. However, Lampsa Hellenic Hotels is 8.27 times less risky than Profile Systems. It trades about 0.0 of its potential returns per unit of risk. Profile Systems Software is currently generating about -0.19 per unit of risk. If you would invest 3,740 in Lampsa Hellenic Hotels on August 30, 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lampsa Hellenic Hotels vs. Profile Systems Software
Performance |
| Timeline |
| Lampsa Hellenic Hotels |
| Profile Systems Software |
Lampsa Hellenic and Profile Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lampsa Hellenic and Profile Systems
The main advantage of trading using opposite Lampsa Hellenic and Profile Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lampsa Hellenic position performs unexpectedly, Profile Systems 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 Profile Systems will offset losses from the drop in Profile Systems' long position.| Lampsa Hellenic vs. Piraeus Financial Holdings | Lampsa Hellenic vs. Marfin Investment Group | Lampsa Hellenic vs. As Commercial Industrial | Lampsa Hellenic vs. Thrace Plastics Holding |
| Profile Systems vs. Terna Energy Societe | Profile Systems vs. Mytilineos SA | Profile Systems vs. Public Power | Profile Systems vs. Quest Holdings 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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