Correlation Between N Leventeris and EL D
Can any of the company-specific risk be diversified away by investing in both N Leventeris and EL D 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 EL D 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 EL D Mouzakis, you can compare the effects of market volatilities on N Leventeris and EL D 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 EL D. Check out your portfolio center. Please also check ongoing floating volatility patterns of N Leventeris and EL D.
Diversification Opportunities for N Leventeris and EL D
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between LEBEP and MOYZK is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding N Leventeris SA and EL D Mouzakis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EL D Mouzakis 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 EL D. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EL D Mouzakis has no effect on the direction of N Leventeris i.e., N Leventeris and EL D go up and down completely randomly.
Pair Corralation between N Leventeris and EL D
Assuming the 90 days trading horizon N Leventeris SA is expected to under-perform the EL D. In addition to that, N Leventeris is 4.94 times more volatile than EL D Mouzakis. It trades about -0.09 of its total potential returns per unit of risk. EL D Mouzakis is currently generating about -0.19 per unit of volatility. If you would invest 69.00 in EL D Mouzakis on August 30, 2024 and sell it today you would lose (6.00) from holding EL D Mouzakis or give up 8.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
N Leventeris SA vs. EL D Mouzakis
Performance |
| Timeline |
| N Leventeris SA |
| EL D Mouzakis |
N Leventeris and EL D Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with N Leventeris and EL D
The main advantage of trading using opposite N Leventeris and EL D positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N Leventeris position performs unexpectedly, EL D 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 EL D will offset losses from the drop in EL D's 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 |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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