Correlation Between Technical Olympic and CPI Computer
Can any of the company-specific risk be diversified away by investing in both Technical Olympic and CPI Computer 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 Technical Olympic and CPI Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Technical Olympic SA and CPI Computer Peripherals, you can compare the effects of market volatilities on Technical Olympic and CPI Computer 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 Technical Olympic with a short position of CPI Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Technical Olympic and CPI Computer.
Diversification Opportunities for Technical Olympic and CPI Computer
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Technical and CPI is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Technical Olympic SA and CPI Computer Peripherals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPI Computer Peripherals and Technical Olympic 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 Technical Olympic SA are associated (or correlated) with CPI Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPI Computer Peripherals has no effect on the direction of Technical Olympic i.e., Technical Olympic and CPI Computer go up and down completely randomly.
Pair Corralation between Technical Olympic and CPI Computer
Assuming the 90 days trading horizon Technical Olympic SA is expected to generate 0.63 times more return on investment than CPI Computer. However, Technical Olympic SA is 1.58 times less risky than CPI Computer. It trades about -0.1 of its potential returns per unit of risk. CPI Computer Peripherals is currently generating about -0.26 per unit of risk. If you would invest 244.00 in Technical Olympic SA on August 28, 2024 and sell it today you would lose (14.00) from holding Technical Olympic SA or give up 5.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Technical Olympic SA vs. CPI Computer Peripherals
Performance |
| Timeline |
| Technical Olympic |
| CPI Computer Peripherals |
Technical Olympic and CPI Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Technical Olympic and CPI Computer
The main advantage of trading using opposite Technical Olympic and CPI Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Technical Olympic position performs unexpectedly, CPI Computer 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 CPI Computer will offset losses from the drop in CPI Computer's long position.| Technical Olympic vs. Mytilineos SA | Technical Olympic vs. Terna Energy Societe | Technical Olympic vs. Greek Organization of | Technical Olympic vs. Motor Oil Corinth |
| CPI Computer vs. Performance Technologies SA | CPI Computer vs. National Bank of | CPI Computer vs. EL D Mouzakis | CPI Computer vs. Lampsa Hellenic Hotels |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets |