Correlation Between Motor Oil and Thessaloniki Port
Can any of the company-specific risk be diversified away by investing in both Motor Oil and Thessaloniki Port 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 Thessaloniki Port 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 Thessaloniki Port Authority, you can compare the effects of market volatilities on Motor Oil and Thessaloniki Port 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 Thessaloniki Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Motor Oil and Thessaloniki Port.
Diversification Opportunities for Motor Oil and Thessaloniki Port
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Motor and Thessaloniki is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Motor Oil Corinth and Thessaloniki Port Authority in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thessaloniki Port 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 Thessaloniki Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thessaloniki Port has no effect on the direction of Motor Oil i.e., Motor Oil and Thessaloniki Port go up and down completely randomly.
Pair Corralation between Motor Oil and Thessaloniki Port
Assuming the 90 days trading horizon Motor Oil is expected to generate 3.88 times less return on investment than Thessaloniki Port. In addition to that, Motor Oil is 1.2 times more volatile than Thessaloniki Port Authority. It trades about 0.01 of its total potential returns per unit of risk. Thessaloniki Port Authority is currently generating about 0.03 per unit of volatility. If you would invest 2,272 in Thessaloniki Port Authority on November 5, 2024 and sell it today you would earn a total of 458.00 from holding Thessaloniki Port Authority or generate 20.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Motor Oil Corinth vs. Thessaloniki Port Authority
Performance |
| Timeline |
| Motor Oil Corinth |
| Thessaloniki Port |
Motor Oil and Thessaloniki Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Motor Oil and Thessaloniki Port
The main advantage of trading using opposite Motor Oil and Thessaloniki Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Motor Oil position performs unexpectedly, Thessaloniki Port 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 Thessaloniki Port will offset losses from the drop in Thessaloniki Port'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 |
| Thessaloniki Port vs. Piraeus Financial Holdings | Thessaloniki Port vs. Elvalhalcor Hellenic Copper | Thessaloniki Port vs. Logismos Information Systems | Thessaloniki Port vs. Optima bank 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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