Correlation Between Motor Oil and Kri Kri
Can any of the company-specific risk be diversified away by investing in both Motor Oil and Kri Kri 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 Kri Kri 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 Kri Kri Milk Industry, you can compare the effects of market volatilities on Motor Oil and Kri Kri 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 Kri Kri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Motor Oil and Kri Kri.
Diversification Opportunities for Motor Oil and Kri Kri
Pay attention - limited upside
The 3 months correlation between Motor and Kri is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Motor Oil Corinth and Kri Kri Milk Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kri Kri Milk 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 Kri Kri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kri Kri Milk has no effect on the direction of Motor Oil i.e., Motor Oil and Kri Kri go up and down completely randomly.
Pair Corralation between Motor Oil and Kri Kri
Assuming the 90 days trading horizon Motor Oil Corinth is expected to under-perform the Kri Kri. But the stock apears to be less risky and, when comparing its historical volatility, Motor Oil Corinth is 1.92 times less risky than Kri Kri. The stock trades about -0.2 of its potential returns per unit of risk. The Kri Kri Milk Industry is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,350 in Kri Kri Milk Industry on August 24, 2024 and sell it today you would earn a total of 85.00 from holding Kri Kri Milk Industry or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Motor Oil Corinth vs. Kri Kri Milk Industry
Performance |
| Timeline |
| Motor Oil Corinth |
| Kri Kri Milk |
Motor Oil and Kri Kri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Motor Oil and Kri Kri
The main advantage of trading using opposite Motor Oil and Kri Kri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Motor Oil position performs unexpectedly, Kri Kri 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 Kri Kri will offset losses from the drop in Kri Kri's 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 |
| Kri Kri vs. Motor Oil Corinth | Kri Kri vs. Mytilineos SA | Kri Kri vs. Gr Sarantis SA | Kri Kri vs. Aegean Airlines 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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