Correlation Between EL D and Unibios Holdings
Can any of the company-specific risk be diversified away by investing in both EL D and Unibios Holdings 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 EL D and Unibios Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EL D Mouzakis and Unibios Holdings SA, you can compare the effects of market volatilities on EL D and Unibios Holdings 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 EL D with a short position of Unibios Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of EL D and Unibios Holdings.
Diversification Opportunities for EL D and Unibios Holdings
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MOYZK and Unibios is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding EL D Mouzakis and Unibios Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unibios Holdings and EL D 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 EL D Mouzakis are associated (or correlated) with Unibios Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unibios Holdings has no effect on the direction of EL D i.e., EL D and Unibios Holdings go up and down completely randomly.
Pair Corralation between EL D and Unibios Holdings
Assuming the 90 days trading horizon EL D Mouzakis is expected to under-perform the Unibios Holdings. In addition to that, EL D is 1.55 times more volatile than Unibios Holdings SA. It trades about -0.12 of its total potential returns per unit of risk. Unibios Holdings SA is currently generating about -0.01 per unit of volatility. If you would invest 154.00 in Unibios Holdings SA on November 27, 2024 and sell it today you would lose (1.00) from holding Unibios Holdings SA or give up 0.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EL D Mouzakis vs. Unibios Holdings SA
Performance |
| Timeline |
| EL D Mouzakis |
| Unibios Holdings |
EL D and Unibios Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EL D and Unibios Holdings
The main advantage of trading using opposite EL D and Unibios Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EL D position performs unexpectedly, Unibios Holdings 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 Unibios Holdings will offset losses from the drop in Unibios Holdings' long position.| EL D vs. Hellenic Telecommunications Organization | EL D vs. Bank of Greece | EL D vs. Foodlink AE | EL D vs. Sidma SA Steel |
| Unibios Holdings vs. Logismos Information Systems | Unibios Holdings vs. Daios Plastics SA | Unibios Holdings vs. Elvalhalcor Hellenic Copper | Unibios Holdings vs. Technical Olympic 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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