Correlation Between Thessaloniki Port and Selected Textiles
Can any of the company-specific risk be diversified away by investing in both Thessaloniki Port and Selected Textiles 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 Thessaloniki Port and Selected Textiles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thessaloniki Port Authority and Selected Textiles SA, you can compare the effects of market volatilities on Thessaloniki Port and Selected Textiles 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 Thessaloniki Port with a short position of Selected Textiles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thessaloniki Port and Selected Textiles.
Diversification Opportunities for Thessaloniki Port and Selected Textiles
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Thessaloniki and Selected is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Thessaloniki Port Authority and Selected Textiles SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selected Textiles and Thessaloniki Port 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 Thessaloniki Port Authority are associated (or correlated) with Selected Textiles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selected Textiles has no effect on the direction of Thessaloniki Port i.e., Thessaloniki Port and Selected Textiles go up and down completely randomly.
Pair Corralation between Thessaloniki Port and Selected Textiles
Assuming the 90 days trading horizon Thessaloniki Port is expected to generate 56.57 times less return on investment than Selected Textiles. But when comparing it to its historical volatility, Thessaloniki Port Authority is 3.59 times less risky than Selected Textiles. It trades about 0.05 of its potential returns per unit of risk. Selected Textiles SA is currently generating about 0.86 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Selected Textiles SA on August 28, 2024 and sell it today you would earn a total of 2.00 from holding Selected Textiles SA or generate 18.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 19.05% |
| Values | Daily Returns |
Thessaloniki Port Authority vs. Selected Textiles SA
Performance |
| Timeline |
| Thessaloniki Port |
| Selected Textiles |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Thessaloniki Port and Selected Textiles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thessaloniki Port and Selected Textiles
The main advantage of trading using opposite Thessaloniki Port and Selected Textiles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thessaloniki Port position performs unexpectedly, Selected Textiles 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 Selected Textiles will offset losses from the drop in Selected Textiles' long position.| Thessaloniki Port vs. National Bank of | Thessaloniki Port vs. EL D Mouzakis | Thessaloniki Port vs. Lampsa Hellenic Hotels | Thessaloniki Port vs. Eurobank Ergasias Services |
| Selected Textiles vs. Technical Olympic SA | Selected Textiles vs. Iktinos Hellas SA | Selected Textiles vs. GEK TERNA Holdings | Selected Textiles vs. Fourlis Holdings 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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