Correlation Between Marfin Investment and Technical Olympic
Can any of the company-specific risk be diversified away by investing in both Marfin Investment and Technical Olympic 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 Technical Olympic 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 Technical Olympic SA, you can compare the effects of market volatilities on Marfin Investment and Technical Olympic 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 Technical Olympic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfin Investment and Technical Olympic.
Diversification Opportunities for Marfin Investment and Technical Olympic
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Marfin and Technical is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Marfin Investment Group and Technical Olympic SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technical Olympic 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 Technical Olympic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technical Olympic has no effect on the direction of Marfin Investment i.e., Marfin Investment and Technical Olympic go up and down completely randomly.
Pair Corralation between Marfin Investment and Technical Olympic
Assuming the 90 days trading horizon Marfin Investment Group is expected to generate 2.62 times more return on investment than Technical Olympic. However, Marfin Investment is 2.62 times more volatile than Technical Olympic SA. It trades about 0.03 of its potential returns per unit of risk. Technical Olympic SA is currently generating about 0.04 per unit of risk. If you would invest 228.00 in Marfin Investment Group on October 25, 2024 and sell it today you would earn a total of 53.00 from holding Marfin Investment Group or generate 23.25% 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. Technical Olympic SA
Performance |
| Timeline |
| Marfin Investment |
| Technical Olympic |
Marfin Investment and Technical Olympic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfin Investment and Technical Olympic
The main advantage of trading using opposite Marfin Investment and Technical Olympic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfin Investment position performs unexpectedly, Technical Olympic 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 Technical Olympic will offset losses from the drop in Technical Olympic's long position.| Marfin Investment vs. Hellenic Telecommunications Organization | Marfin Investment vs. Sidma SA Steel | Marfin Investment vs. Piraeus Financial Holdings | Marfin Investment vs. Lampsa Hellenic Hotels |
| Technical Olympic vs. Profile Systems Software | Technical Olympic vs. As Commercial Industrial | Technical Olympic vs. Karelia Tobacco | Technical Olympic vs. Marfin Investment Group |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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