Correlation Between N Leventeris and Vogiatzoglou Systems
Can any of the company-specific risk be diversified away by investing in both N Leventeris and Vogiatzoglou Systems 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 Vogiatzoglou Systems 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 Vogiatzoglou Systems SA, you can compare the effects of market volatilities on N Leventeris and Vogiatzoglou Systems 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 Vogiatzoglou Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of N Leventeris and Vogiatzoglou Systems.
Diversification Opportunities for N Leventeris and Vogiatzoglou Systems
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LEBEP and Vogiatzoglou is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding N Leventeris SA and Vogiatzoglou Systems SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vogiatzoglou Systems 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 Vogiatzoglou Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vogiatzoglou Systems has no effect on the direction of N Leventeris i.e., N Leventeris and Vogiatzoglou Systems go up and down completely randomly.
Pair Corralation between N Leventeris and Vogiatzoglou Systems
Assuming the 90 days trading horizon N Leventeris SA is expected to generate 2.78 times more return on investment than Vogiatzoglou Systems. However, N Leventeris is 2.78 times more volatile than Vogiatzoglou Systems SA. It trades about 0.18 of its potential returns per unit of risk. Vogiatzoglou Systems SA is currently generating about 0.08 per unit of risk. If you would invest 21.00 in N Leventeris SA on November 5, 2024 and sell it today you would earn a total of 5.00 from holding N Leventeris SA or generate 23.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
N Leventeris SA vs. Vogiatzoglou Systems SA
Performance |
| Timeline |
| N Leventeris SA |
| Vogiatzoglou Systems |
N Leventeris and Vogiatzoglou Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with N Leventeris and Vogiatzoglou Systems
The main advantage of trading using opposite N Leventeris and Vogiatzoglou Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N Leventeris position performs unexpectedly, Vogiatzoglou Systems 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 Vogiatzoglou Systems will offset losses from the drop in Vogiatzoglou Systems' long position.| N Leventeris vs. Thrace Plastics Holding | N Leventeris vs. Intertech SA Inter | N Leventeris vs. Marfin Investment Group | N Leventeris vs. Eurobank Ergasias Services |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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