Correlation Between Motor Oil and Attica Publications
Can any of the company-specific risk be diversified away by investing in both Motor Oil and Attica Publications 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 Motor Oil and Attica Publications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Motor Oil Corinth and Attica Publications SA, you can compare the effects of market volatilities on Motor Oil and Attica Publications 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 Motor Oil with a short position of Attica Publications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Motor Oil and Attica Publications.
Diversification Opportunities for Motor Oil and Attica Publications
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Motor and Attica is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Motor Oil Corinth and Attica Publications SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Attica Publications and Motor Oil 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 Motor Oil Corinth are associated (or correlated) with Attica Publications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Attica Publications has no effect on the direction of Motor Oil i.e., Motor Oil and Attica Publications go up and down completely randomly.
Pair Corralation between Motor Oil and Attica Publications
Assuming the 90 days trading horizon Motor Oil Corinth is expected to under-perform the Attica Publications. But the stock apears to be less risky and, when comparing its historical volatility, Motor Oil Corinth is 3.88 times less risky than Attica Publications. The stock trades about 0.0 of its potential returns per unit of risk. The Attica Publications SA is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 39.00 in Attica Publications SA on September 1, 2024 and sell it today you would earn a total of 4.00 from holding Attica Publications SA or generate 10.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Motor Oil Corinth vs. Attica Publications SA
Performance |
| Timeline |
| Motor Oil Corinth |
| Attica Publications |
Motor Oil and Attica Publications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Motor Oil and Attica Publications
The main advantage of trading using opposite Motor Oil and Attica Publications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Motor Oil position performs unexpectedly, Attica Publications 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 Attica Publications will offset losses from the drop in Attica Publications' long position.| Motor Oil vs. Mytilineos SA | Motor Oil vs. Hellenic Petroleum SA | Motor Oil vs. Greek Organization of | Motor Oil vs. Hellenic Telecommunications Organization |
| Attica Publications vs. General Commercial Industrial | Attica Publications vs. Lampsa Hellenic Hotels | Attica Publications vs. Technical Olympic SA | Attica Publications vs. National Bank of |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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