Correlation Between Marfin Investment and E Pairis
Can any of the company-specific risk be diversified away by investing in both Marfin Investment and E Pairis 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 E Pairis 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 E Pairis SA, you can compare the effects of market volatilities on Marfin Investment and E Pairis 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 E Pairis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfin Investment and E Pairis.
Diversification Opportunities for Marfin Investment and E Pairis
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marfin and PAIR is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Marfin Investment Group and E Pairis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Pairis 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 E Pairis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Pairis SA has no effect on the direction of Marfin Investment i.e., Marfin Investment and E Pairis go up and down completely randomly.
Pair Corralation between Marfin Investment and E Pairis
Assuming the 90 days trading horizon Marfin Investment Group is expected to under-perform the E Pairis. But the stock apears to be less risky and, when comparing its historical volatility, Marfin Investment Group is 1.15 times less risky than E Pairis. The stock trades about -0.13 of its potential returns per unit of risk. The E Pairis SA is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 100.00 in E Pairis SA on August 29, 2024 and sell it today you would lose (1.00) from holding E Pairis SA or give up 1.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marfin Investment Group vs. E Pairis SA
Performance |
| Timeline |
| Marfin Investment |
| E Pairis SA |
Marfin Investment and E Pairis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfin Investment and E Pairis
The main advantage of trading using opposite Marfin Investment and E Pairis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfin Investment position performs unexpectedly, E Pairis 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 E Pairis will offset losses from the drop in E Pairis' long position.| Marfin Investment vs. Interlife General Insurance | Marfin Investment vs. Karelia Tobacco | Marfin Investment vs. Elton International Trading | Marfin Investment vs. Technical Olympic SA |
| E Pairis vs. Hellenic Telecommunications Organization | E Pairis vs. Technical Olympic SA | E Pairis vs. Optima bank SA | E Pairis 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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