Correlation Between EL D and Mytilineos
Can any of the company-specific risk be diversified away by investing in both EL D and Mytilineos 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 Mytilineos 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 Mytilineos SA, you can compare the effects of market volatilities on EL D and Mytilineos 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 Mytilineos. Check out your portfolio center. Please also check ongoing floating volatility patterns of EL D and Mytilineos.
Diversification Opportunities for EL D and Mytilineos
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between MOYZK and Mytilineos is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding EL D Mouzakis and Mytilineos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mytilineos 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 Mytilineos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mytilineos SA has no effect on the direction of EL D i.e., EL D and Mytilineos go up and down completely randomly.
Pair Corralation between EL D and Mytilineos
Assuming the 90 days trading horizon EL D Mouzakis is expected to under-perform the Mytilineos. In addition to that, EL D is 1.34 times more volatile than Mytilineos SA. It trades about -0.17 of its total potential returns per unit of risk. Mytilineos SA is currently generating about -0.08 per unit of volatility. If you would invest 3,240 in Mytilineos SA on August 28, 2024 and sell it today you would lose (88.00) from holding Mytilineos SA or give up 2.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EL D Mouzakis vs. Mytilineos SA
Performance |
| Timeline |
| EL D Mouzakis |
| Mytilineos SA |
EL D and Mytilineos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EL D and Mytilineos
The main advantage of trading using opposite EL D and Mytilineos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EL D position performs unexpectedly, Mytilineos 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 Mytilineos will offset losses from the drop in Mytilineos' long position.The idea behind EL D Mouzakis and Mytilineos SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Mytilineos vs. National Bank of | Mytilineos vs. EL D Mouzakis | Mytilineos vs. Lampsa Hellenic Hotels | Mytilineos vs. Eurobank Ergasias Services |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |