Correlation Between Marfin Investment and Performance Technologies
Can any of the company-specific risk be diversified away by investing in both Marfin Investment and Performance Technologies 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 Performance Technologies 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 Performance Technologies SA, you can compare the effects of market volatilities on Marfin Investment and Performance Technologies 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 Performance Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfin Investment and Performance Technologies.
Diversification Opportunities for Marfin Investment and Performance Technologies
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Marfin and Performance is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Marfin Investment Group and Performance Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Technologies 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 Performance Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Technologies has no effect on the direction of Marfin Investment i.e., Marfin Investment and Performance Technologies go up and down completely randomly.
Pair Corralation between Marfin Investment and Performance Technologies
Assuming the 90 days trading horizon Marfin Investment Group is expected to generate 1.2 times more return on investment than Performance Technologies. However, Marfin Investment is 1.2 times more volatile than Performance Technologies SA. It trades about -0.11 of its potential returns per unit of risk. Performance Technologies SA is currently generating about -0.15 per unit of risk. If you would invest 326.00 in Marfin Investment Group on August 28, 2024 and sell it today you would lose (22.00) from holding Marfin Investment Group or give up 6.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marfin Investment Group vs. Performance Technologies SA
Performance |
| Timeline |
| Marfin Investment |
| Performance Technologies |
Marfin Investment and Performance Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfin Investment and Performance Technologies
The main advantage of trading using opposite Marfin Investment and Performance Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfin Investment position performs unexpectedly, Performance Technologies 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 Performance Technologies will offset losses from the drop in Performance Technologies' 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 |
| Performance Technologies vs. Lampsa Hellenic Hotels | Performance Technologies vs. Bank of Greece | Performance Technologies vs. Foodlink AE | Performance Technologies vs. Profile Systems Software |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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