Correlation Between N Leventeris and Cenergy Holdings
Can any of the company-specific risk be diversified away by investing in both N Leventeris and Cenergy 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 N Leventeris and Cenergy Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between N Leventeris SA and Cenergy Holdings SA, you can compare the effects of market volatilities on N Leventeris and Cenergy 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 N Leventeris with a short position of Cenergy Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of N Leventeris and Cenergy Holdings.
Diversification Opportunities for N Leventeris and Cenergy Holdings
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LEBEP and Cenergy is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding N Leventeris SA and Cenergy Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cenergy Holdings and N Leventeris 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 N Leventeris SA are associated (or correlated) with Cenergy Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cenergy Holdings has no effect on the direction of N Leventeris i.e., N Leventeris and Cenergy Holdings go up and down completely randomly.
Pair Corralation between N Leventeris and Cenergy Holdings
Assuming the 90 days trading horizon N Leventeris SA is expected to generate 4.12 times more return on investment than Cenergy Holdings. However, N Leventeris is 4.12 times more volatile than Cenergy Holdings SA. It trades about 0.04 of its potential returns per unit of risk. Cenergy Holdings SA is currently generating about -0.03 per unit of risk. If you would invest 34.00 in N Leventeris SA on August 30, 2024 and sell it today you would earn a total of 0.00 from holding N Leventeris SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
N Leventeris SA vs. Cenergy Holdings SA
Performance |
| Timeline |
| N Leventeris SA |
| Cenergy Holdings |
N Leventeris and Cenergy Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with N Leventeris and Cenergy Holdings
The main advantage of trading using opposite N Leventeris and Cenergy Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N Leventeris position performs unexpectedly, Cenergy 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 Cenergy Holdings will offset losses from the drop in Cenergy Holdings' long position.| N Leventeris vs. Intracom Holdings SA | N Leventeris vs. Public Power | N Leventeris vs. Hellenic Petroleum SA | N Leventeris vs. National Bank of |
| Cenergy Holdings vs. Profile Systems Software | Cenergy Holdings vs. Daios Plastics SA | Cenergy Holdings vs. Intertech SA Inter | Cenergy Holdings vs. Marfin Investment Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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