Correlation Between Mytilineos and CNL Capital
Can any of the company-specific risk be diversified away by investing in both Mytilineos and CNL Capital 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 Mytilineos and CNL Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mytilineos SA and CNL Capital EKES AIFM, you can compare the effects of market volatilities on Mytilineos and CNL Capital 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 Mytilineos with a short position of CNL Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mytilineos and CNL Capital.
Diversification Opportunities for Mytilineos and CNL Capital
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mytilineos and CNL is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Mytilineos SA and CNL Capital EKES AIFM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNL Capital EKES and Mytilineos 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 Mytilineos SA are associated (or correlated) with CNL Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNL Capital EKES has no effect on the direction of Mytilineos i.e., Mytilineos and CNL Capital go up and down completely randomly.
Pair Corralation between Mytilineos and CNL Capital
Assuming the 90 days trading horizon Mytilineos SA is expected to generate 0.69 times more return on investment than CNL Capital. However, Mytilineos SA is 1.44 times less risky than CNL Capital. It trades about 0.07 of its potential returns per unit of risk. CNL Capital EKES AIFM is currently generating about 0.02 per unit of risk. If you would invest 1,918 in Mytilineos SA on September 4, 2024 and sell it today you would earn a total of 1,236 from holding Mytilineos SA or generate 64.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mytilineos SA vs. CNL Capital EKES AIFM
Performance |
| Timeline |
| Mytilineos SA |
| CNL Capital EKES |
Mytilineos and CNL Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mytilineos and CNL Capital
The main advantage of trading using opposite Mytilineos and CNL Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mytilineos position performs unexpectedly, CNL Capital 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 CNL Capital will offset losses from the drop in CNL Capital's long position.| Mytilineos vs. Viohalco SA | Mytilineos vs. National Bank of | Mytilineos vs. EL D Mouzakis | Mytilineos vs. Lampsa Hellenic Hotels |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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