Correlation Between Marfin Investment and House Of
Can any of the company-specific risk be diversified away by investing in both Marfin Investment and House Of 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 House Of 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 The House of, you can compare the effects of market volatilities on Marfin Investment and House Of 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 House Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfin Investment and House Of.
Diversification Opportunities for Marfin Investment and House Of
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Marfin and House is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Marfin Investment Group and The House of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The House 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 House Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The House has no effect on the direction of Marfin Investment i.e., Marfin Investment and House Of go up and down completely randomly.
Pair Corralation between Marfin Investment and House Of
Assuming the 90 days trading horizon Marfin Investment Group is expected to under-perform the House Of. But the stock apears to be less risky and, when comparing its historical volatility, Marfin Investment Group is 3.18 times less risky than House Of. The stock trades about -0.09 of its potential returns per unit of risk. The The House of is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 15.00 in The House of on November 4, 2024 and sell it today you would earn a total of 0.00 from holding The House of or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marfin Investment Group vs. The House of
Performance |
| Timeline |
| Marfin Investment |
| The House |
Marfin Investment and House Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfin Investment and House Of
The main advantage of trading using opposite Marfin Investment and House Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfin Investment position performs unexpectedly, House Of 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 House Of will offset losses from the drop in House Of's long position.| Marfin Investment vs. National Bank of | Marfin Investment vs. N Leventeris SA | Marfin Investment vs. Eurobank Ergasias Services | Marfin Investment vs. Vogiatzoglou Systems SA |
| House Of vs. Foodlink AE | House Of vs. Logismos Information Systems | House Of vs. Lampsa Hellenic Hotels | House Of vs. Daios Plastics SA |
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 CEOs Directory module to screen CEOs from public companies around the world.
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