Correlation Between Nafpaktos Textile and Biokarpet
Can any of the company-specific risk be diversified away by investing in both Nafpaktos Textile and Biokarpet 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 Nafpaktos Textile and Biokarpet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nafpaktos Textile Industry and Biokarpet SA, you can compare the effects of market volatilities on Nafpaktos Textile and Biokarpet 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 Nafpaktos Textile with a short position of Biokarpet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nafpaktos Textile and Biokarpet.
Diversification Opportunities for Nafpaktos Textile and Biokarpet
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nafpaktos and Biokarpet is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Nafpaktos Textile Industry and Biokarpet SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biokarpet SA and Nafpaktos Textile 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 Nafpaktos Textile Industry are associated (or correlated) with Biokarpet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biokarpet SA has no effect on the direction of Nafpaktos Textile i.e., Nafpaktos Textile and Biokarpet go up and down completely randomly.
Pair Corralation between Nafpaktos Textile and Biokarpet
Assuming the 90 days trading horizon Nafpaktos Textile Industry is expected to under-perform the Biokarpet. In addition to that, Nafpaktos Textile is 1.43 times more volatile than Biokarpet SA. It trades about -0.07 of its total potential returns per unit of risk. Biokarpet SA is currently generating about 0.2 per unit of volatility. If you would invest 188.00 in Biokarpet SA on October 14, 2024 and sell it today you would earn a total of 12.00 from holding Biokarpet SA or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nafpaktos Textile Industry vs. Biokarpet SA
Performance |
| Timeline |
| Nafpaktos Textile |
| Biokarpet SA |
Nafpaktos Textile and Biokarpet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nafpaktos Textile and Biokarpet
The main advantage of trading using opposite Nafpaktos Textile and Biokarpet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nafpaktos Textile position performs unexpectedly, Biokarpet 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 Biokarpet will offset losses from the drop in Biokarpet's long position.| Nafpaktos Textile vs. Intertech SA Inter | Nafpaktos Textile vs. Marfin Investment Group | Nafpaktos Textile vs. Aegean Airlines SA | Nafpaktos Textile vs. Hellenic Telecommunications Organization |
| Biokarpet vs. Alumil Aluminium Industry | Biokarpet vs. Elton International Trading | Biokarpet vs. Ekter SA | Biokarpet vs. Avax SA |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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