Correlation Between Thessaloniki Port and Autohellas
Can any of the company-specific risk be diversified away by investing in both Thessaloniki Port and Autohellas 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 Autohellas 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 Autohellas SA, you can compare the effects of market volatilities on Thessaloniki Port and Autohellas 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 Autohellas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thessaloniki Port and Autohellas.
Diversification Opportunities for Thessaloniki Port and Autohellas
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thessaloniki and Autohellas is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Thessaloniki Port Authority and Autohellas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohellas 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 Autohellas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autohellas SA has no effect on the direction of Thessaloniki Port i.e., Thessaloniki Port and Autohellas go up and down completely randomly.
Pair Corralation between Thessaloniki Port and Autohellas
Assuming the 90 days trading horizon Thessaloniki Port Authority is expected to generate 2.86 times more return on investment than Autohellas. However, Thessaloniki Port is 2.86 times more volatile than Autohellas SA. It trades about 0.29 of its potential returns per unit of risk. Autohellas SA is currently generating about 0.03 per unit of risk. If you would invest 2,220 in Thessaloniki Port Authority on November 5, 2024 and sell it today you would earn a total of 510.00 from holding Thessaloniki Port Authority or generate 22.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thessaloniki Port Authority vs. Autohellas SA
Performance |
| Timeline |
| Thessaloniki Port |
| Autohellas SA |
Thessaloniki Port and Autohellas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thessaloniki Port and Autohellas
The main advantage of trading using opposite Thessaloniki Port and Autohellas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thessaloniki Port position performs unexpectedly, Autohellas 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 Autohellas will offset losses from the drop in Autohellas' long position.| Thessaloniki Port vs. National Bank of | Thessaloniki Port vs. Lampsa Hellenic Hotels | Thessaloniki Port vs. Profile Systems Software | Thessaloniki Port vs. Hellenic Telecommunications Organization |
| Autohellas vs. Interlife General Insurance | Autohellas vs. Karelia Tobacco | Autohellas vs. Foodlink AE | Autohellas vs. As Commercial Industrial |
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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