Correlation Between Mermeren Kombinat and Hellenic Exchanges
Can any of the company-specific risk be diversified away by investing in both Mermeren Kombinat and Hellenic Exchanges 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 Mermeren Kombinat and Hellenic Exchanges into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mermeren Kombinat AD and Hellenic Exchanges , you can compare the effects of market volatilities on Mermeren Kombinat and Hellenic Exchanges 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 Mermeren Kombinat with a short position of Hellenic Exchanges. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mermeren Kombinat and Hellenic Exchanges.
Diversification Opportunities for Mermeren Kombinat and Hellenic Exchanges
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mermeren and Hellenic is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Mermeren Kombinat AD and Hellenic Exchanges in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hellenic Exchanges and Mermeren Kombinat 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 Mermeren Kombinat AD are associated (or correlated) with Hellenic Exchanges. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hellenic Exchanges has no effect on the direction of Mermeren Kombinat i.e., Mermeren Kombinat and Hellenic Exchanges go up and down completely randomly.
Pair Corralation between Mermeren Kombinat and Hellenic Exchanges
Assuming the 90 days trading horizon Mermeren Kombinat AD is expected to under-perform the Hellenic Exchanges. In addition to that, Mermeren Kombinat is 1.65 times more volatile than Hellenic Exchanges . It trades about -0.14 of its total potential returns per unit of risk. Hellenic Exchanges is currently generating about 0.24 per unit of volatility. If you would invest 431.00 in Hellenic Exchanges on October 26, 2024 and sell it today you would earn a total of 54.00 from holding Hellenic Exchanges or generate 12.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mermeren Kombinat AD vs. Hellenic Exchanges
Performance |
| Timeline |
| Mermeren Kombinat |
| Hellenic Exchanges |
Mermeren Kombinat and Hellenic Exchanges Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mermeren Kombinat and Hellenic Exchanges
The main advantage of trading using opposite Mermeren Kombinat and Hellenic Exchanges positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mermeren Kombinat position performs unexpectedly, Hellenic Exchanges 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 Hellenic Exchanges will offset losses from the drop in Hellenic Exchanges' long position.| Mermeren Kombinat vs. Marfin Investment Group | Mermeren Kombinat vs. National Bank of | Mermeren Kombinat vs. Optima bank SA | Mermeren Kombinat vs. Piraeus Financial Holdings |
| Hellenic Exchanges vs. Greek Organization of | Hellenic Exchanges vs. Mytilineos SA | Hellenic Exchanges vs. Hellenic Telecommunications Organization | Hellenic Exchanges vs. Hellenic Petroleum 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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