Correlation Between Marfin Investment and Kordellos
Can any of the company-specific risk be diversified away by investing in both Marfin Investment and Kordellos 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 Kordellos 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 Kordellos Ch Bros, you can compare the effects of market volatilities on Marfin Investment and Kordellos 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 Kordellos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfin Investment and Kordellos.
Diversification Opportunities for Marfin Investment and Kordellos
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Marfin and Kordellos is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Marfin Investment Group and Kordellos Ch Bros in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kordellos Ch Bros 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 Kordellos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kordellos Ch Bros has no effect on the direction of Marfin Investment i.e., Marfin Investment and Kordellos go up and down completely randomly.
Pair Corralation between Marfin Investment and Kordellos
Assuming the 90 days trading horizon Marfin Investment Group is expected to under-perform the Kordellos. In addition to that, Marfin Investment is 1.47 times more volatile than Kordellos Ch Bros. It trades about -0.1 of its total potential returns per unit of risk. Kordellos Ch Bros is currently generating about 0.07 per unit of volatility. If you would invest 41.00 in Kordellos Ch Bros on August 30, 2024 and sell it today you would earn a total of 1.00 from holding Kordellos Ch Bros or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marfin Investment Group vs. Kordellos Ch Bros
Performance |
| Timeline |
| Marfin Investment |
| Kordellos Ch Bros |
Marfin Investment and Kordellos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfin Investment and Kordellos
The main advantage of trading using opposite Marfin Investment and Kordellos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfin Investment position performs unexpectedly, Kordellos 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 Kordellos will offset losses from the drop in Kordellos' long position.| Marfin Investment vs. National Bank of | Marfin Investment vs. EL D Mouzakis | Marfin Investment vs. Lampsa Hellenic Hotels | Marfin Investment vs. Eurobank Ergasias Services |
| Kordellos vs. Sidma SA Steel | Kordellos vs. Marfin Investment Group | Kordellos vs. General Commercial Industrial | Kordellos vs. Piraeus Financial Holdings |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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