Correlation Between Marfin Investment and IKloukinas ILappas
Can any of the company-specific risk be diversified away by investing in both Marfin Investment and IKloukinas ILappas 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 Marfin Investment and IKloukinas ILappas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marfin Investment Group and IKloukinas ILappas SA, you can compare the effects of market volatilities on Marfin Investment and IKloukinas ILappas 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 Marfin Investment with a short position of IKloukinas ILappas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfin Investment and IKloukinas ILappas.
Diversification Opportunities for Marfin Investment and IKloukinas ILappas
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marfin and IKloukinas is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Marfin Investment Group and IKloukinas ILappas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IKloukinas ILappas and Marfin Investment 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 Marfin Investment Group are associated (or correlated) with IKloukinas ILappas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IKloukinas ILappas has no effect on the direction of Marfin Investment i.e., Marfin Investment and IKloukinas ILappas go up and down completely randomly.
Pair Corralation between Marfin Investment and IKloukinas ILappas
Assuming the 90 days trading horizon Marfin Investment Group is expected to generate 2.11 times more return on investment than IKloukinas ILappas. However, Marfin Investment is 2.11 times more volatile than IKloukinas ILappas SA. It trades about 0.06 of its potential returns per unit of risk. IKloukinas ILappas SA is currently generating about 0.1 per unit of risk. If you would invest 130.00 in Marfin Investment Group on September 2, 2024 and sell it today you would earn a total of 167.00 from holding Marfin Investment Group or generate 128.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marfin Investment Group vs. IKloukinas ILappas SA
Performance |
| Timeline |
| Marfin Investment |
| IKloukinas ILappas |
Marfin Investment and IKloukinas ILappas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfin Investment and IKloukinas ILappas
The main advantage of trading using opposite Marfin Investment and IKloukinas ILappas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfin Investment position performs unexpectedly, IKloukinas ILappas 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 IKloukinas ILappas will offset losses from the drop in IKloukinas ILappas' long position.| Marfin Investment vs. National Bank of | Marfin Investment vs. Hellenic Telecommunications Organization | Marfin Investment vs. Interlife General Insurance | Marfin Investment vs. Thrace Plastics Holding |
| IKloukinas ILappas vs. Mytilineos SA | IKloukinas ILappas vs. Terna Energy Societe | IKloukinas ILappas vs. Greek Organization of | IKloukinas ILappas vs. Motor Oil Corinth |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |