Correlation Between Emporiki Eisagogiki and N Leventeris
Can any of the company-specific risk be diversified away by investing in both Emporiki Eisagogiki and N Leventeris 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 Emporiki Eisagogiki and N Leventeris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emporiki Eisagogiki Aftokiniton and N Leventeris SA, you can compare the effects of market volatilities on Emporiki Eisagogiki and N Leventeris 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 Emporiki Eisagogiki with a short position of N Leventeris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emporiki Eisagogiki and N Leventeris.
Diversification Opportunities for Emporiki Eisagogiki and N Leventeris
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Emporiki and LEBEP is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Emporiki Eisagogiki Aftokinito and N Leventeris SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N Leventeris SA and Emporiki Eisagogiki 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 Emporiki Eisagogiki Aftokiniton are associated (or correlated) with N Leventeris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N Leventeris SA has no effect on the direction of Emporiki Eisagogiki i.e., Emporiki Eisagogiki and N Leventeris go up and down completely randomly.
Pair Corralation between Emporiki Eisagogiki and N Leventeris
Assuming the 90 days trading horizon Emporiki Eisagogiki is expected to generate 1.72 times less return on investment than N Leventeris. But when comparing it to its historical volatility, Emporiki Eisagogiki Aftokiniton is 2.03 times less risky than N Leventeris. It trades about 0.04 of its potential returns per unit of risk. N Leventeris SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 24.00 in N Leventeris SA on August 31, 2024 and sell it today you would earn a total of 1.00 from holding N Leventeris SA or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Emporiki Eisagogiki Aftokinito vs. N Leventeris SA
Performance |
| Timeline |
| Emporiki Eisagogiki |
| N Leventeris SA |
Emporiki Eisagogiki and N Leventeris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emporiki Eisagogiki and N Leventeris
The main advantage of trading using opposite Emporiki Eisagogiki and N Leventeris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emporiki Eisagogiki position performs unexpectedly, N Leventeris 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 N Leventeris will offset losses from the drop in N Leventeris' long position.| Emporiki Eisagogiki vs. As Commercial Industrial | Emporiki Eisagogiki vs. General Commercial Industrial | Emporiki Eisagogiki vs. Athens Medical CSA | Emporiki Eisagogiki vs. Sidma SA Steel |
| N Leventeris vs. Performance Technologies SA | N Leventeris vs. Hellenic Telecommunications Organization | N Leventeris vs. Elvalhalcor Hellenic Copper | N Leventeris vs. Intracom Constructions Societe |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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