Correlation Between Nafpaktos Textile and Marfin Investment
Can any of the company-specific risk be diversified away by investing in both Nafpaktos Textile and Marfin Investment 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 Marfin Investment 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 Marfin Investment Group, you can compare the effects of market volatilities on Nafpaktos Textile and Marfin Investment 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 Marfin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nafpaktos Textile and Marfin Investment.
Diversification Opportunities for Nafpaktos Textile and Marfin Investment
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nafpaktos and Marfin is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Nafpaktos Textile Industry and Marfin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marfin Investment 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 Marfin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marfin Investment has no effect on the direction of Nafpaktos Textile i.e., Nafpaktos Textile and Marfin Investment go up and down completely randomly.
Pair Corralation between Nafpaktos Textile and Marfin Investment
Assuming the 90 days trading horizon Nafpaktos Textile Industry is expected to generate 1.7 times more return on investment than Marfin Investment. However, Nafpaktos Textile is 1.7 times more volatile than Marfin Investment Group. It trades about -0.01 of its potential returns per unit of risk. Marfin Investment Group is currently generating about -0.11 per unit of risk. If you would invest 83.00 in Nafpaktos Textile Industry on September 23, 2024 and sell it today you would lose (1.00) from holding Nafpaktos Textile Industry or give up 1.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nafpaktos Textile Industry vs. Marfin Investment Group
Performance |
| Timeline |
| Nafpaktos Textile |
| Marfin Investment |
Nafpaktos Textile and Marfin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nafpaktos Textile and Marfin Investment
The main advantage of trading using opposite Nafpaktos Textile and Marfin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nafpaktos Textile position performs unexpectedly, Marfin Investment 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 Marfin Investment will offset losses from the drop in Marfin Investment's long position.| Nafpaktos Textile vs. Marfin Investment Group | Nafpaktos Textile vs. Optima bank SA | Nafpaktos Textile vs. Piraeus Financial Holdings | Nafpaktos Textile vs. Elvalhalcor Hellenic Copper |
| Marfin Investment vs. Elton International Trading | Marfin Investment vs. Admie Holding SA | Marfin Investment vs. National Bank of | Marfin Investment vs. N Leventeris 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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