Correlation Between EL D and Autohellas
Can any of the company-specific risk be diversified away by investing in both EL D and Autohellas 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 Autohellas 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 Autohellas SA, you can compare the effects of market volatilities on EL D and Autohellas 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 Autohellas. Check out your portfolio center. Please also check ongoing floating volatility patterns of EL D and Autohellas.
Diversification Opportunities for EL D and Autohellas
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between MOYZK and Autohellas is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding EL D Mouzakis and Autohellas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohellas 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 Autohellas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autohellas SA has no effect on the direction of EL D i.e., EL D and Autohellas go up and down completely randomly.
Pair Corralation between EL D and Autohellas
Assuming the 90 days trading horizon EL D Mouzakis is expected to generate 2.31 times more return on investment than Autohellas. However, EL D is 2.31 times more volatile than Autohellas SA. It trades about 0.02 of its potential returns per unit of risk. Autohellas SA is currently generating about -0.09 per unit of risk. If you would invest 62.00 in EL D Mouzakis on September 2, 2024 and sell it today you would earn a total of 1.00 from holding EL D Mouzakis or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EL D Mouzakis vs. Autohellas SA
Performance |
| Timeline |
| EL D Mouzakis |
| Autohellas SA |
EL D and Autohellas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EL D and Autohellas
The main advantage of trading using opposite EL D and Autohellas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EL D position performs unexpectedly, Autohellas 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 Autohellas will offset losses from the drop in Autohellas' long position.| EL D vs. Alumil Aluminium Industry | EL D vs. Elton International Trading | EL D vs. Ekter SA | EL D vs. Avax SA |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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