Correlation Between Lampsa Hellenic and Quest Holdings
Can any of the company-specific risk be diversified away by investing in both Lampsa Hellenic and Quest Holdings 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 Quest Holdings 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 Quest Holdings SA, you can compare the effects of market volatilities on Lampsa Hellenic and Quest Holdings 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 Quest Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lampsa Hellenic and Quest Holdings.
Diversification Opportunities for Lampsa Hellenic and Quest Holdings
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lampsa and Quest is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Lampsa Hellenic Hotels and Quest Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quest Holdings 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 Quest Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quest Holdings SA has no effect on the direction of Lampsa Hellenic i.e., Lampsa Hellenic and Quest Holdings go up and down completely randomly.
Pair Corralation between Lampsa Hellenic and Quest Holdings
Assuming the 90 days trading horizon Lampsa Hellenic Hotels is expected to generate 0.12 times more return on investment than Quest Holdings. However, Lampsa Hellenic Hotels is 8.46 times less risky than Quest Holdings. It trades about 0.0 of its potential returns per unit of risk. Quest Holdings SA is currently generating about -0.07 per unit of risk. If you would invest 3,740 in Lampsa Hellenic Hotels on August 28, 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. Quest Holdings SA
Performance |
| Timeline |
| Lampsa Hellenic Hotels |
| Quest Holdings SA |
Lampsa Hellenic and Quest Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lampsa Hellenic and Quest Holdings
The main advantage of trading using opposite Lampsa Hellenic and Quest Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lampsa Hellenic position performs unexpectedly, Quest Holdings 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 Quest Holdings will offset losses from the drop in Quest Holdings' 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 |
| Quest Holdings vs. Performance Technologies SA | Quest Holdings vs. National Bank of | Quest Holdings vs. EL D Mouzakis | Quest Holdings vs. Lampsa Hellenic Hotels |
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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