Correlation Between Emporiki Eisagogiki and Gr Sarantis
Can any of the company-specific risk be diversified away by investing in both Emporiki Eisagogiki and Gr Sarantis 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 Gr Sarantis 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 Gr Sarantis SA, you can compare the effects of market volatilities on Emporiki Eisagogiki and Gr Sarantis 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 Gr Sarantis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emporiki Eisagogiki and Gr Sarantis.
Diversification Opportunities for Emporiki Eisagogiki and Gr Sarantis
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Emporiki and SAR is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Emporiki Eisagogiki Aftokinito and Gr Sarantis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gr Sarantis 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 Gr Sarantis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gr Sarantis SA has no effect on the direction of Emporiki Eisagogiki i.e., Emporiki Eisagogiki and Gr Sarantis go up and down completely randomly.
Pair Corralation between Emporiki Eisagogiki and Gr Sarantis
Assuming the 90 days trading horizon Emporiki Eisagogiki Aftokiniton is expected to generate 1.07 times more return on investment than Gr Sarantis. However, Emporiki Eisagogiki is 1.07 times more volatile than Gr Sarantis SA. It trades about -0.05 of its potential returns per unit of risk. Gr Sarantis SA is currently generating about -0.06 per unit of risk. If you would invest 260.00 in Emporiki Eisagogiki Aftokiniton on August 28, 2024 and sell it today you would lose (5.00) from holding Emporiki Eisagogiki Aftokiniton or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emporiki Eisagogiki Aftokinito vs. Gr Sarantis SA
Performance |
| Timeline |
| Emporiki Eisagogiki |
| Gr Sarantis SA |
Emporiki Eisagogiki and Gr Sarantis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emporiki Eisagogiki and Gr Sarantis
The main advantage of trading using opposite Emporiki Eisagogiki and Gr Sarantis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emporiki Eisagogiki position performs unexpectedly, Gr Sarantis 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 Gr Sarantis will offset losses from the drop in Gr Sarantis' long position.| Emporiki Eisagogiki vs. National Bank of | Emporiki Eisagogiki vs. N Leventeris SA | Emporiki Eisagogiki vs. Eurobank Ergasias Services | Emporiki Eisagogiki vs. Vogiatzoglou Systems SA |
| Gr Sarantis vs. Jumbo SA | Gr Sarantis vs. Mytilineos SA | Gr Sarantis vs. Aegean Airlines SA | Gr Sarantis vs. Greek Organization 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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