Correlation Between Nafpaktos Textile and J B
Can any of the company-specific risk be diversified away by investing in both Nafpaktos Textile and J B 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 J B 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 J B Ladenis, you can compare the effects of market volatilities on Nafpaktos Textile and J B 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 J B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nafpaktos Textile and J B.
Diversification Opportunities for Nafpaktos Textile and J B
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nafpaktos and MIN is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Nafpaktos Textile Industry and J B Ladenis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J B Ladenis 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 J B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J B Ladenis has no effect on the direction of Nafpaktos Textile i.e., Nafpaktos Textile and J B go up and down completely randomly.
Pair Corralation between Nafpaktos Textile and J B
Assuming the 90 days trading horizon Nafpaktos Textile Industry is expected to under-perform the J B. But the stock apears to be less risky and, when comparing its historical volatility, Nafpaktos Textile Industry is 1.6 times less risky than J B. The stock trades about -0.01 of its potential returns per unit of risk. The J B Ladenis is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 46.00 in J B Ladenis on October 31, 2024 and sell it today you would earn a total of 4.00 from holding J B Ladenis or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Nafpaktos Textile Industry vs. J B Ladenis
Performance |
| Timeline |
| Nafpaktos Textile |
| J B Ladenis |
Nafpaktos Textile and J B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nafpaktos Textile and J B
The main advantage of trading using opposite Nafpaktos Textile and J B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nafpaktos Textile position performs unexpectedly, J B 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 J B will offset losses from the drop in J B's long position.| Nafpaktos Textile vs. Biokarpet SA | Nafpaktos Textile vs. EL D Mouzakis | Nafpaktos Textile vs. Lanakam SA | Nafpaktos Textile vs. J B Ladenis |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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