Correlation Between Motor Oil and Emporiki Eisagogiki
Can any of the company-specific risk be diversified away by investing in both Motor Oil and Emporiki Eisagogiki 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 Emporiki Eisagogiki 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 Emporiki Eisagogiki Aftokiniton, you can compare the effects of market volatilities on Motor Oil and Emporiki Eisagogiki 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 Emporiki Eisagogiki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Motor Oil and Emporiki Eisagogiki.
Diversification Opportunities for Motor Oil and Emporiki Eisagogiki
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Motor and Emporiki is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Motor Oil Corinth and Emporiki Eisagogiki Aftokinito in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emporiki Eisagogiki 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 Emporiki Eisagogiki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emporiki Eisagogiki has no effect on the direction of Motor Oil i.e., Motor Oil and Emporiki Eisagogiki go up and down completely randomly.
Pair Corralation between Motor Oil and Emporiki Eisagogiki
Assuming the 90 days trading horizon Motor Oil is expected to generate 7.76 times less return on investment than Emporiki Eisagogiki. But when comparing it to its historical volatility, Motor Oil Corinth is 1.51 times less risky than Emporiki Eisagogiki. It trades about 0.01 of its potential returns per unit of risk. Emporiki Eisagogiki Aftokiniton is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 193.00 in Emporiki Eisagogiki Aftokiniton on August 31, 2024 and sell it today you would earn a total of 65.00 from holding Emporiki Eisagogiki Aftokiniton or generate 33.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Motor Oil Corinth vs. Emporiki Eisagogiki Aftokinito
Performance |
| Timeline |
| Motor Oil Corinth |
| Emporiki Eisagogiki |
Motor Oil and Emporiki Eisagogiki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Motor Oil and Emporiki Eisagogiki
The main advantage of trading using opposite Motor Oil and Emporiki Eisagogiki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Motor Oil position performs unexpectedly, Emporiki Eisagogiki 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 Emporiki Eisagogiki will offset losses from the drop in Emporiki Eisagogiki'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 |
| Emporiki Eisagogiki vs. As Commercial Industrial | Emporiki Eisagogiki vs. General Commercial Industrial | Emporiki Eisagogiki vs. Athens Medical CSA | Emporiki Eisagogiki vs. Sidma SA Steel |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |