Correlation Between Thessaloniki Port and Iktinos Hellas
Can any of the company-specific risk be diversified away by investing in both Thessaloniki Port and Iktinos Hellas 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 Iktinos Hellas 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 Iktinos Hellas SA, you can compare the effects of market volatilities on Thessaloniki Port and Iktinos Hellas 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 Iktinos Hellas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thessaloniki Port and Iktinos Hellas.
Diversification Opportunities for Thessaloniki Port and Iktinos Hellas
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thessaloniki and Iktinos is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Thessaloniki Port Authority and Iktinos Hellas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iktinos Hellas SA 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 Iktinos Hellas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iktinos Hellas SA has no effect on the direction of Thessaloniki Port i.e., Thessaloniki Port and Iktinos Hellas go up and down completely randomly.
Pair Corralation between Thessaloniki Port and Iktinos Hellas
Assuming the 90 days trading horizon Thessaloniki Port Authority is expected to under-perform the Iktinos Hellas. But the stock apears to be less risky and, when comparing its historical volatility, Thessaloniki Port Authority is 2.34 times less risky than Iktinos Hellas. The stock trades about -0.04 of its potential returns per unit of risk. The Iktinos Hellas SA is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Iktinos Hellas SA on August 25, 2024 and sell it today you would earn a total of 3.00 from holding Iktinos Hellas SA or generate 10.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thessaloniki Port Authority vs. Iktinos Hellas SA
Performance |
| Timeline |
| Thessaloniki Port |
| Iktinos Hellas SA |
Thessaloniki Port and Iktinos Hellas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thessaloniki Port and Iktinos Hellas
The main advantage of trading using opposite Thessaloniki Port and Iktinos Hellas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thessaloniki Port position performs unexpectedly, Iktinos Hellas 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 Iktinos Hellas will offset losses from the drop in Iktinos Hellas' long position.| Thessaloniki Port vs. Piraeus Port Authority | Thessaloniki Port vs. National Bank of | Thessaloniki Port vs. EL D Mouzakis | Thessaloniki Port vs. Lampsa Hellenic Hotels |
| Iktinos Hellas vs. Hellenic Petroleum SA | Iktinos Hellas vs. Motor Oil Corinth | Iktinos Hellas vs. Hellenic Exchanges | Iktinos Hellas vs. Athens Water Supply |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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