Correlation Between Mytilineos and Viohalco
Can any of the company-specific risk be diversified away by investing in both Mytilineos and Viohalco 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 Viohalco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mytilineos SA and Viohalco SA, you can compare the effects of market volatilities on Mytilineos and Viohalco 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 Viohalco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mytilineos and Viohalco.
Diversification Opportunities for Mytilineos and Viohalco
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mytilineos and Viohalco is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Mytilineos SA and Viohalco SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viohalco SA 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 Viohalco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viohalco SA has no effect on the direction of Mytilineos i.e., Mytilineos and Viohalco go up and down completely randomly.
Pair Corralation between Mytilineos and Viohalco
Assuming the 90 days trading horizon Mytilineos SA is expected to under-perform the Viohalco. But the stock apears to be less risky and, when comparing its historical volatility, Mytilineos SA is 1.22 times less risky than Viohalco. The stock trades about -0.11 of its potential returns per unit of risk. The Viohalco SA is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 537.00 in Viohalco SA on August 30, 2024 and sell it today you would lose (15.00) from holding Viohalco SA or give up 2.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mytilineos SA vs. Viohalco SA
Performance |
| Timeline |
| Mytilineos SA |
| Viohalco SA |
Mytilineos and Viohalco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mytilineos and Viohalco
The main advantage of trading using opposite Mytilineos and Viohalco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mytilineos position performs unexpectedly, Viohalco 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 Viohalco will offset losses from the drop in Viohalco's long position.| Mytilineos vs. Elvalhalcor Hellenic Copper | Mytilineos vs. Thrace Plastics Holding | Mytilineos vs. Optronics Technologies SA | Mytilineos vs. Eurobank Ergasias Services |
| Viohalco vs. Cenergy Holdings SA | Viohalco vs. Van de Velde | Viohalco vs. NV Bekaert SA | Viohalco vs. Econocom Group SANV |
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.
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 | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |