Correlation Between N Leventeris and Autohellas
Can any of the company-specific risk be diversified away by investing in both N Leventeris and Autohellas 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 Autohellas 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 Autohellas SA, you can compare the effects of market volatilities on N Leventeris and Autohellas 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 Autohellas. Check out your portfolio center. Please also check ongoing floating volatility patterns of N Leventeris and Autohellas.
Diversification Opportunities for N Leventeris and Autohellas
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between LEBEP and Autohellas is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding N Leventeris SA and Autohellas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohellas 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 Autohellas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autohellas SA has no effect on the direction of N Leventeris i.e., N Leventeris and Autohellas go up and down completely randomly.
Pair Corralation between N Leventeris and Autohellas
Assuming the 90 days trading horizon N Leventeris SA is expected to under-perform the Autohellas. In addition to that, N Leventeris is 5.34 times more volatile than Autohellas SA. It trades about -0.06 of its total potential returns per unit of risk. Autohellas SA is currently generating about 0.2 per unit of volatility. If you would invest 1,012 in Autohellas SA on October 26, 2024 and sell it today you would earn a total of 110.00 from holding Autohellas SA or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
N Leventeris SA vs. Autohellas SA
Performance |
| Timeline |
| N Leventeris SA |
| Autohellas SA |
N Leventeris and Autohellas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with N Leventeris and Autohellas
The main advantage of trading using opposite N Leventeris and Autohellas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N Leventeris position performs unexpectedly, Autohellas 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 Autohellas will offset losses from the drop in Autohellas' long position.| N Leventeris vs. Intracom Holdings SA | N Leventeris vs. Ideal Group SA | N Leventeris vs. Public Power | N Leventeris vs. Hellenic Petroleum SA |
| Autohellas vs. National Bank of | Autohellas vs. N Leventeris SA | Autohellas vs. Eurobank Ergasias Services | Autohellas vs. Vogiatzoglou Systems SA |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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