Correlation Between Marfin Investment and VIS Containers
Can any of the company-specific risk be diversified away by investing in both Marfin Investment and VIS Containers 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 VIS Containers 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 VIS Containers Manufacturing, you can compare the effects of market volatilities on Marfin Investment and VIS Containers 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 VIS Containers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfin Investment and VIS Containers.
Diversification Opportunities for Marfin Investment and VIS Containers
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Marfin and VIS is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Marfin Investment Group and VIS Containers Manufacturing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIS Containers Manuf 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 VIS Containers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIS Containers Manuf has no effect on the direction of Marfin Investment i.e., Marfin Investment and VIS Containers go up and down completely randomly.
Pair Corralation between Marfin Investment and VIS Containers
Assuming the 90 days trading horizon Marfin Investment Group is expected to under-perform the VIS Containers. In addition to that, Marfin Investment is 1.43 times more volatile than VIS Containers Manufacturing. It trades about -0.16 of its total potential returns per unit of risk. VIS Containers Manufacturing is currently generating about 0.22 per unit of volatility. If you would invest 13.00 in VIS Containers Manufacturing on September 3, 2024 and sell it today you would earn a total of 1.00 from holding VIS Containers Manufacturing or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marfin Investment Group vs. VIS Containers Manufacturing
Performance |
| Timeline |
| Marfin Investment |
| VIS Containers Manuf |
Marfin Investment and VIS Containers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marfin Investment and VIS Containers
The main advantage of trading using opposite Marfin Investment and VIS Containers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marfin Investment position performs unexpectedly, VIS Containers 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 VIS Containers will offset losses from the drop in VIS Containers' long position.| Marfin Investment vs. National Bank of | Marfin Investment vs. EL D Mouzakis | Marfin Investment vs. Lampsa Hellenic Hotels | Marfin Investment vs. N Leventeris SA |
| VIS Containers vs. Thrace Plastics Holding | VIS Containers vs. Flexopack Socit Anonyme | VIS Containers vs. E Pairis 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |