Correlation Between N Leventeris and Mytilineos
Can any of the company-specific risk be diversified away by investing in both N Leventeris and Mytilineos 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 Mytilineos 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 Mytilineos SA, you can compare the effects of market volatilities on N Leventeris and Mytilineos 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 Mytilineos. Check out your portfolio center. Please also check ongoing floating volatility patterns of N Leventeris and Mytilineos.
Diversification Opportunities for N Leventeris and Mytilineos
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LEBEP and Mytilineos is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding N Leventeris SA and Mytilineos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mytilineos SA 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 Mytilineos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mytilineos SA has no effect on the direction of N Leventeris i.e., N Leventeris and Mytilineos go up and down completely randomly.
Pair Corralation between N Leventeris and Mytilineos
Assuming the 90 days trading horizon N Leventeris SA is expected to generate 5.49 times more return on investment than Mytilineos. However, N Leventeris is 5.49 times more volatile than Mytilineos SA. It trades about 0.11 of its potential returns per unit of risk. Mytilineos SA is currently generating about -0.12 per unit of risk. If you would invest 30.00 in N Leventeris SA on August 24, 2024 and sell it today you would earn a total of 4.00 from holding N Leventeris SA or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
N Leventeris SA vs. Mytilineos SA
Performance |
| Timeline |
| N Leventeris SA |
| Mytilineos SA |
N Leventeris and Mytilineos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with N Leventeris and Mytilineos
The main advantage of trading using opposite N Leventeris and Mytilineos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N Leventeris position performs unexpectedly, Mytilineos 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 Mytilineos will offset losses from the drop in Mytilineos' long position.| N Leventeris vs. Athens Medical CSA | N Leventeris vs. National Bank of | N Leventeris vs. Marfin Investment Group | N Leventeris vs. Hellenic Telecommunications Organization |
| Mytilineos vs. Viohalco SA | Mytilineos vs. National Bank of | Mytilineos vs. EL D Mouzakis | Mytilineos 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |