Correlation Between Lampsa Hellenic and VIS Containers
Can any of the company-specific risk be diversified away by investing in both Lampsa Hellenic and VIS Containers 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 VIS Containers 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 VIS Containers Manufacturing, you can compare the effects of market volatilities on Lampsa Hellenic and VIS Containers 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 VIS Containers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lampsa Hellenic and VIS Containers.
Diversification Opportunities for Lampsa Hellenic and VIS Containers
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lampsa and VIS is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Lampsa Hellenic Hotels and VIS Containers Manufacturing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIS Containers Manuf 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 VIS Containers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIS Containers Manuf has no effect on the direction of Lampsa Hellenic i.e., Lampsa Hellenic and VIS Containers go up and down completely randomly.
Pair Corralation between Lampsa Hellenic and VIS Containers
Assuming the 90 days trading horizon Lampsa Hellenic is expected to generate 1.66 times less return on investment than VIS Containers. But when comparing it to its historical volatility, Lampsa Hellenic Hotels is 6.29 times less risky than VIS Containers. It trades about 0.12 of its potential returns per unit of risk. VIS Containers Manufacturing is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 12.00 in VIS Containers Manufacturing on September 13, 2024 and sell it today you would earn a total of 2.00 from holding VIS Containers Manufacturing or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.73% |
| Values | Daily Returns |
Lampsa Hellenic Hotels vs. VIS Containers Manufacturing
Performance |
| Timeline |
| Lampsa Hellenic Hotels |
| VIS Containers Manuf |
Lampsa Hellenic and VIS Containers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lampsa Hellenic and VIS Containers
The main advantage of trading using opposite Lampsa Hellenic and VIS Containers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lampsa Hellenic position performs unexpectedly, VIS Containers 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 VIS Containers will offset losses from the drop in VIS Containers' long position.| Lampsa Hellenic vs. National Bank of | Lampsa Hellenic vs. Eurobank Ergasias Services | Lampsa Hellenic vs. Alpha Trust Mutual | Lampsa Hellenic vs. Iktinos Hellas SA |
| VIS Containers vs. Thrace Plastics Holding | VIS Containers vs. Flexopack Socit Anonyme | VIS Containers vs. National Bank of | VIS Containers 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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