Correlation Between Nafpaktos Textile and EL D
Can any of the company-specific risk be diversified away by investing in both Nafpaktos Textile and EL D 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 EL D 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 EL D Mouzakis, you can compare the effects of market volatilities on Nafpaktos Textile and EL D 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 EL D. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nafpaktos Textile and EL D.
Diversification Opportunities for Nafpaktos Textile and EL D
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nafpaktos and MOYZK is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Nafpaktos Textile Industry and EL D Mouzakis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EL D Mouzakis 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 EL D. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EL D Mouzakis has no effect on the direction of Nafpaktos Textile i.e., Nafpaktos Textile and EL D go up and down completely randomly.
Pair Corralation between Nafpaktos Textile and EL D
Assuming the 90 days trading horizon Nafpaktos Textile Industry is expected to generate 1.5 times more return on investment than EL D. However, Nafpaktos Textile is 1.5 times more volatile than EL D Mouzakis. It trades about 0.02 of its potential returns per unit of risk. EL D Mouzakis is currently generating about -0.13 per unit of risk. If you would invest 79.00 in Nafpaktos Textile Industry on November 9, 2024 and sell it today you would earn a total of 0.00 from holding Nafpaktos Textile Industry or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 62.5% |
| Values | Daily Returns |
Nafpaktos Textile Industry vs. EL D Mouzakis
Performance |
| Timeline |
| Nafpaktos Textile |
| EL D Mouzakis |
Risk-Adjusted Performance
Weak
Weak | Strong |
Nafpaktos Textile and EL D Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nafpaktos Textile and EL D
The main advantage of trading using opposite Nafpaktos Textile and EL D positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nafpaktos Textile position performs unexpectedly, EL D 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 EL D will offset losses from the drop in EL D's long position.| Nafpaktos Textile vs. Elton International Trading | Nafpaktos Textile vs. Optima bank SA | Nafpaktos Textile vs. Optronics Technologies SA | Nafpaktos Textile vs. Eurobank Ergasias Services |
| EL D vs. Karelia Tobacco | EL D vs. Daios Plastics SA | EL D vs. Thrace Plastics Holding | EL D vs. Intracom Constructions Societe |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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