Correlation Between N Leventeris and Interwood Xylemporia
Can any of the company-specific risk be diversified away by investing in both N Leventeris and Interwood Xylemporia 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 Interwood Xylemporia 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 Interwood Xylemporia ATENE, you can compare the effects of market volatilities on N Leventeris and Interwood Xylemporia 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 Interwood Xylemporia. Check out your portfolio center. Please also check ongoing floating volatility patterns of N Leventeris and Interwood Xylemporia.
Diversification Opportunities for N Leventeris and Interwood Xylemporia
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LEBEP and Interwood is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding N Leventeris SA and Interwood Xylemporia ATENE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interwood Xylemporia 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 Interwood Xylemporia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interwood Xylemporia has no effect on the direction of N Leventeris i.e., N Leventeris and Interwood Xylemporia go up and down completely randomly.
Pair Corralation between N Leventeris and Interwood Xylemporia
Assuming the 90 days trading horizon N Leventeris SA is expected to generate 1.75 times more return on investment than Interwood Xylemporia. However, N Leventeris is 1.75 times more volatile than Interwood Xylemporia ATENE. It trades about 0.03 of its potential returns per unit of risk. Interwood Xylemporia ATENE is currently generating about 0.03 per unit of risk. If you would invest 25.00 in N Leventeris SA on September 3, 2024 and sell it today you would earn a total of 0.00 from holding N Leventeris SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
N Leventeris SA vs. Interwood Xylemporia ATENE
Performance |
| Timeline |
| N Leventeris SA |
| Interwood Xylemporia |
N Leventeris and Interwood Xylemporia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with N Leventeris and Interwood Xylemporia
The main advantage of trading using opposite N Leventeris and Interwood Xylemporia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N Leventeris position performs unexpectedly, Interwood Xylemporia 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 Interwood Xylemporia will offset losses from the drop in Interwood Xylemporia's long position.| N Leventeris vs. Logismos Information Systems | N Leventeris vs. Interlife General Insurance | N Leventeris vs. Hellenic Telecommunications Organization | N Leventeris vs. Performance Technologies 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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