Correlation Between Lampsa Hellenic and Gr Sarantis
Can any of the company-specific risk be diversified away by investing in both Lampsa Hellenic and Gr Sarantis 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 Gr Sarantis 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 Gr Sarantis SA, you can compare the effects of market volatilities on Lampsa Hellenic and Gr Sarantis 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 Gr Sarantis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lampsa Hellenic and Gr Sarantis.
Diversification Opportunities for Lampsa Hellenic and Gr Sarantis
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lampsa and SAR is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Lampsa Hellenic Hotels and Gr Sarantis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gr Sarantis 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 Gr Sarantis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gr Sarantis SA has no effect on the direction of Lampsa Hellenic i.e., Lampsa Hellenic and Gr Sarantis go up and down completely randomly.
Pair Corralation between Lampsa Hellenic and Gr Sarantis
Assuming the 90 days trading horizon Lampsa Hellenic is expected to generate 2311.0 times less return on investment than Gr Sarantis. But when comparing it to its historical volatility, Lampsa Hellenic Hotels is 6.63 times less risky than Gr Sarantis. It trades about 0.0 of its potential returns per unit of risk. Gr Sarantis SA is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,090 in Gr Sarantis SA on November 5, 2024 and sell it today you would earn a total of 50.00 from holding Gr Sarantis SA or generate 4.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Lampsa Hellenic Hotels vs. Gr Sarantis SA
Performance |
| Timeline |
| Lampsa Hellenic Hotels |
| Gr Sarantis SA |
Lampsa Hellenic and Gr Sarantis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lampsa Hellenic and Gr Sarantis
The main advantage of trading using opposite Lampsa Hellenic and Gr Sarantis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lampsa Hellenic position performs unexpectedly, Gr Sarantis 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 Gr Sarantis will offset losses from the drop in Gr Sarantis' long position.| Lampsa Hellenic vs. Intertech SA Inter | Lampsa Hellenic vs. Profile Systems Software | Lampsa Hellenic vs. Athens Medical CSA | Lampsa Hellenic vs. Interlife General Insurance |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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