Correlation Between N Leventeris and Performance Technologies
Can any of the company-specific risk be diversified away by investing in both N Leventeris and Performance Technologies 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 Performance Technologies 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 Performance Technologies SA, you can compare the effects of market volatilities on N Leventeris and Performance Technologies 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 Performance Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of N Leventeris and Performance Technologies.
Diversification Opportunities for N Leventeris and Performance Technologies
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LEBEP and Performance is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding N Leventeris SA and Performance Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Technologies 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 Performance Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Technologies has no effect on the direction of N Leventeris i.e., N Leventeris and Performance Technologies go up and down completely randomly.
Pair Corralation between N Leventeris and Performance Technologies
Assuming the 90 days trading horizon N Leventeris SA is expected to generate 3.78 times more return on investment than Performance Technologies. However, N Leventeris is 3.78 times more volatile than Performance Technologies SA. It trades about 0.01 of its potential returns per unit of risk. Performance Technologies SA is currently generating about -0.18 per unit of risk. If you would invest 27.00 in N Leventeris SA on August 31, 2024 and sell it today you would lose (2.00) from holding N Leventeris SA or give up 7.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
N Leventeris SA vs. Performance Technologies SA
Performance |
| Timeline |
| N Leventeris SA |
| Performance Technologies |
N Leventeris and Performance Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with N Leventeris and Performance Technologies
The main advantage of trading using opposite N Leventeris and Performance Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N Leventeris position performs unexpectedly, Performance Technologies 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 Performance Technologies will offset losses from the drop in Performance Technologies' long position.| N Leventeris vs. Performance Technologies SA | N Leventeris vs. Hellenic Telecommunications Organization | N Leventeris vs. Elvalhalcor Hellenic Copper | N Leventeris vs. Intracom Constructions Societe |
| Performance Technologies vs. Quest Holdings SA | Performance Technologies vs. CPI Computer Peripherals | Performance Technologies vs. National Bank of | Performance Technologies vs. EL D Mouzakis |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |