Correlation Between Mermeren Kombinat and Proodeftiki
Can any of the company-specific risk be diversified away by investing in both Mermeren Kombinat and Proodeftiki 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 Proodeftiki 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 Proodeftiki SA, you can compare the effects of market volatilities on Mermeren Kombinat and Proodeftiki 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 Proodeftiki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mermeren Kombinat and Proodeftiki.
Diversification Opportunities for Mermeren Kombinat and Proodeftiki
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mermeren and Proodeftiki is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Mermeren Kombinat AD and Proodeftiki SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proodeftiki 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 Proodeftiki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proodeftiki SA has no effect on the direction of Mermeren Kombinat i.e., Mermeren Kombinat and Proodeftiki go up and down completely randomly.
Pair Corralation between Mermeren Kombinat and Proodeftiki
Assuming the 90 days trading horizon Mermeren Kombinat is expected to generate 1.58 times less return on investment than Proodeftiki. But when comparing it to its historical volatility, Mermeren Kombinat AD is 2.09 times less risky than Proodeftiki. It trades about 0.12 of its potential returns per unit of risk. Proodeftiki SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 27.00 in Proodeftiki SA on October 23, 2024 and sell it today you would earn a total of 1.00 from holding Proodeftiki SA or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mermeren Kombinat AD vs. Proodeftiki SA
Performance |
| Timeline |
| Mermeren Kombinat |
| Proodeftiki SA |
Mermeren Kombinat and Proodeftiki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mermeren Kombinat and Proodeftiki
The main advantage of trading using opposite Mermeren Kombinat and Proodeftiki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mermeren Kombinat position performs unexpectedly, Proodeftiki 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 Proodeftiki will offset losses from the drop in Proodeftiki's long position.| Mermeren Kombinat vs. Thrace Plastics Holding | Mermeren Kombinat vs. Foodlink AE | Mermeren Kombinat vs. Interlife General Insurance | Mermeren Kombinat vs. Aegean Airlines SA |
| Proodeftiki vs. GEK TERNA Holdings | Proodeftiki vs. Avax SA | Proodeftiki vs. Technical Olympic SA | Proodeftiki vs. IKloukinas ILappas 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |