Correlation Between Philippos Nakas and As Commercial
Can any of the company-specific risk be diversified away by investing in both Philippos Nakas and As Commercial 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 Philippos Nakas and As Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Philippos Nakas SA and As Commercial Industrial, you can compare the effects of market volatilities on Philippos Nakas and As Commercial 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 Philippos Nakas with a short position of As Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philippos Nakas and As Commercial.
Diversification Opportunities for Philippos Nakas and As Commercial
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Philippos and ASCO is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Philippos Nakas SA and As Commercial Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on As Commercial Industrial and Philippos Nakas 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 Philippos Nakas SA are associated (or correlated) with As Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of As Commercial Industrial has no effect on the direction of Philippos Nakas i.e., Philippos Nakas and As Commercial go up and down completely randomly.
Pair Corralation between Philippos Nakas and As Commercial
Assuming the 90 days trading horizon Philippos Nakas SA is expected to generate 2.25 times more return on investment than As Commercial. However, Philippos Nakas is 2.25 times more volatile than As Commercial Industrial. It trades about 0.04 of its potential returns per unit of risk. As Commercial Industrial is currently generating about 0.05 per unit of risk. If you would invest 218.00 in Philippos Nakas SA on September 4, 2024 and sell it today you would earn a total of 82.00 from holding Philippos Nakas SA or generate 37.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.3% |
| Values | Daily Returns |
Philippos Nakas SA vs. As Commercial Industrial
Performance |
| Timeline |
| Philippos Nakas SA |
| As Commercial Industrial |
Philippos Nakas and As Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philippos Nakas and As Commercial
The main advantage of trading using opposite Philippos Nakas and As Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philippos Nakas position performs unexpectedly, As Commercial 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 As Commercial will offset losses from the drop in As Commercial's long position.| Philippos Nakas vs. Foodlink AE | Philippos Nakas vs. Hellenic Telecommunications Organization | Philippos Nakas vs. Profile Systems Software | Philippos Nakas vs. Intertech SA Inter |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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