Correlation Between Mermeren Kombinat and Mytilineos
Can any of the company-specific risk be diversified away by investing in both Mermeren Kombinat and Mytilineos 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 Mytilineos 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 Mytilineos SA, you can compare the effects of market volatilities on Mermeren Kombinat and Mytilineos 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 Mytilineos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mermeren Kombinat and Mytilineos.
Diversification Opportunities for Mermeren Kombinat and Mytilineos
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mermeren and Mytilineos is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Mermeren Kombinat AD and Mytilineos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mytilineos SA 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 Mytilineos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mytilineos SA has no effect on the direction of Mermeren Kombinat i.e., Mermeren Kombinat and Mytilineos go up and down completely randomly.
Pair Corralation between Mermeren Kombinat and Mytilineos
Assuming the 90 days trading horizon Mermeren Kombinat AD is expected to generate 2.8 times more return on investment than Mytilineos. However, Mermeren Kombinat is 2.8 times more volatile than Mytilineos SA. It trades about 0.06 of its potential returns per unit of risk. Mytilineos SA is currently generating about -0.08 per unit of risk. If you would invest 4,280 in Mermeren Kombinat AD on August 28, 2024 and sell it today you would earn a total of 140.00 from holding Mermeren Kombinat AD or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mermeren Kombinat AD vs. Mytilineos SA
Performance |
| Timeline |
| Mermeren Kombinat |
| Mytilineos SA |
Mermeren Kombinat and Mytilineos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mermeren Kombinat and Mytilineos
The main advantage of trading using opposite Mermeren Kombinat and Mytilineos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mermeren Kombinat position performs unexpectedly, Mytilineos 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 Mytilineos will offset losses from the drop in Mytilineos' long position.| Mermeren Kombinat vs. National Bank of | Mermeren Kombinat vs. EL D Mouzakis | Mermeren Kombinat vs. Lampsa Hellenic Hotels | Mermeren Kombinat vs. Eurobank Ergasias Services |
| Mytilineos vs. National Bank of | Mytilineos vs. EL D Mouzakis | Mytilineos vs. Lampsa Hellenic Hotels | Mytilineos vs. Eurobank Ergasias Services |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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