Correlation Between Philippos Nakas and Foodlink
Can any of the company-specific risk be diversified away by investing in both Philippos Nakas and Foodlink 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 Foodlink 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 Foodlink AE, you can compare the effects of market volatilities on Philippos Nakas and Foodlink 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 Foodlink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philippos Nakas and Foodlink.
Diversification Opportunities for Philippos Nakas and Foodlink
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Philippos and Foodlink is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Philippos Nakas SA and Foodlink AE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foodlink AE 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 Foodlink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foodlink AE has no effect on the direction of Philippos Nakas i.e., Philippos Nakas and Foodlink go up and down completely randomly.
Pair Corralation between Philippos Nakas and Foodlink
Assuming the 90 days trading horizon Philippos Nakas SA is expected to under-perform the Foodlink. In addition to that, Philippos Nakas is 1.17 times more volatile than Foodlink AE. It trades about -0.02 of its total potential returns per unit of risk. Foodlink AE is currently generating about 0.66 per unit of volatility. If you would invest 32.00 in Foodlink AE on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Foodlink AE or generate 28.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Philippos Nakas SA vs. Foodlink AE
Performance |
| Timeline |
| Philippos Nakas SA |
| Foodlink AE |
Philippos Nakas and Foodlink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philippos Nakas and Foodlink
The main advantage of trading using opposite Philippos Nakas and Foodlink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philippos Nakas position performs unexpectedly, Foodlink 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 Foodlink will offset losses from the drop in Foodlink's long position.| Philippos Nakas vs. Aegean Airlines SA | Philippos Nakas vs. CPI Computer Peripherals | Philippos Nakas vs. Optronics Technologies SA | Philippos Nakas vs. Technical Olympic SA |
| Foodlink vs. Frigoglass SAIC | Foodlink vs. Autohellas SA | Foodlink vs. Public Power | Foodlink vs. Intralot SA Integrated |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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