Correlation Between EL D and Lanakam SA
Can any of the company-specific risk be diversified away by investing in both EL D and Lanakam SA 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 Lanakam SA 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 Lanakam SA, you can compare the effects of market volatilities on EL D and Lanakam SA 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 Lanakam SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of EL D and Lanakam SA.
Diversification Opportunities for EL D and Lanakam SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MOYZK and Lanakam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EL D Mouzakis and Lanakam SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lanakam SA 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 Lanakam SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lanakam SA has no effect on the direction of EL D i.e., EL D and Lanakam SA go up and down completely randomly.
Pair Corralation between EL D and Lanakam SA
If you would invest (100.00) in Lanakam SA on September 19, 2024 and sell it today you would earn a total of 100.00 from holding Lanakam SA or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
EL D Mouzakis vs. Lanakam SA
Performance |
| Timeline |
| EL D Mouzakis |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lanakam SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
EL D and Lanakam SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EL D and Lanakam SA
The main advantage of trading using opposite EL D and Lanakam SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EL D position performs unexpectedly, Lanakam SA 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 Lanakam SA will offset losses from the drop in Lanakam SA's long position.| EL D vs. Hellenic Telecommunications Organization | EL D vs. Athens Medical CSA | EL D vs. Optima bank SA | EL D vs. Lampsa Hellenic Hotels |
| Lanakam SA vs. Eurobank Ergasias Services | Lanakam SA vs. Logismos Information Systems | Lanakam SA vs. CPI Computer Peripherals | Lanakam SA vs. Daios Plastics 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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