Correlation Between N Leventeris and Sidma SA
Can any of the company-specific risk be diversified away by investing in both N Leventeris and Sidma SA 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 Sidma SA 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 Sidma SA Steel, you can compare the effects of market volatilities on N Leventeris and Sidma SA 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 Sidma SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of N Leventeris and Sidma SA.
Diversification Opportunities for N Leventeris and Sidma SA
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LEBEP and Sidma is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding N Leventeris SA and Sidma SA Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sidma SA Steel 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 Sidma SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sidma SA Steel has no effect on the direction of N Leventeris i.e., N Leventeris and Sidma SA go up and down completely randomly.
Pair Corralation between N Leventeris and Sidma SA
Assuming the 90 days trading horizon N Leventeris SA is expected to under-perform the Sidma SA. In addition to that, N Leventeris is 3.47 times more volatile than Sidma SA Steel. It trades about -0.17 of its total potential returns per unit of risk. Sidma SA Steel is currently generating about 0.02 per unit of volatility. If you would invest 155.00 in Sidma SA Steel on September 4, 2024 and sell it today you would earn a total of 1.00 from holding Sidma SA Steel or generate 0.65% 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. Sidma SA Steel
Performance |
| Timeline |
| N Leventeris SA |
| Sidma SA Steel |
N Leventeris and Sidma SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with N Leventeris and Sidma SA
The main advantage of trading using opposite N Leventeris and Sidma SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N Leventeris position performs unexpectedly, Sidma SA 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 Sidma SA will offset losses from the drop in Sidma SA's long position.| N Leventeris vs. Unibios Holdings SA | N Leventeris vs. Intracom Holdings SA | N Leventeris vs. Public Power | N Leventeris vs. Hellenic Petroleum SA |
| Sidma SA vs. National Bank of | Sidma SA vs. EL D Mouzakis | Sidma SA vs. Lampsa Hellenic Hotels | Sidma SA vs. N Leventeris 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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