Correlation Between Marfin Investment and Mytilineos
Can any of the company-specific risk be diversified away by investing in both Marfin Investment 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 Marfin Investment and Mytilineos 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 Mytilineos SA, you can compare the effects of market volatilities on Marfin Investment 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 Marfin Investment with a short position of Mytilineos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfin Investment and Mytilineos.
Diversification Opportunities for Marfin Investment and Mytilineos
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marfin and Mytilineos is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Marfin Investment Group and Mytilineos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mytilineos SA 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 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 Marfin Investment i.e., Marfin Investment and Mytilineos go up and down completely randomly.
Pair Corralation between Marfin Investment and Mytilineos
Assuming the 90 days trading horizon Marfin Investment Group is expected to under-perform the Mytilineos. But the stock apears to be less risky and, when comparing its historical volatility, Marfin Investment Group is 1.15 times less risky than Mytilineos. The stock trades about -0.04 of its potential returns per unit of risk. The Mytilineos SA is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 3,440 in Mytilineos SA on November 29, 2024 and sell it today you would earn a total of 240.00 from holding Mytilineos SA or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marfin Investment Group vs. Mytilineos SA
Performance |
| Timeline |
| Marfin Investment |
| Mytilineos SA |
Marfin Investment and Mytilineos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfin Investment and Mytilineos
The main advantage of trading using opposite Marfin Investment and Mytilineos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfin Investment 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.| Marfin Investment vs. Interlife General Insurance | Marfin Investment vs. Lampsa Hellenic Hotels | Marfin Investment vs. Optima bank SA | Marfin Investment vs. Piraeus Financial Holdings |
| Mytilineos vs. Athens Medical CSA | Mytilineos vs. Marfin Investment Group | Mytilineos vs. Profile Systems Software | Mytilineos vs. CPI Computer Peripherals |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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