Correlation Between Technical Olympic and Lampsa Hellenic
Can any of the company-specific risk be diversified away by investing in both Technical Olympic and Lampsa Hellenic 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 Lampsa Hellenic 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 Lampsa Hellenic Hotels, you can compare the effects of market volatilities on Technical Olympic and Lampsa Hellenic 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 Lampsa Hellenic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Technical Olympic and Lampsa Hellenic.
Diversification Opportunities for Technical Olympic and Lampsa Hellenic
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Technical and Lampsa is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Technical Olympic SA and Lampsa Hellenic Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lampsa Hellenic Hotels 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 Lampsa Hellenic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lampsa Hellenic Hotels has no effect on the direction of Technical Olympic i.e., Technical Olympic and Lampsa Hellenic go up and down completely randomly.
Pair Corralation between Technical Olympic and Lampsa Hellenic
Assuming the 90 days trading horizon Technical Olympic SA is expected to under-perform the Lampsa Hellenic. In addition to that, Technical Olympic is 1.33 times more volatile than Lampsa Hellenic Hotels. It trades about -0.07 of its total potential returns per unit of risk. Lampsa Hellenic Hotels is currently generating about -0.03 per unit of volatility. If you would invest 3,820 in Lampsa Hellenic Hotels on August 30, 2024 and sell it today you would lose (80.00) from holding Lampsa Hellenic Hotels or give up 2.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Technical Olympic SA vs. Lampsa Hellenic Hotels
Performance |
| Timeline |
| Technical Olympic |
| Lampsa Hellenic Hotels |
Technical Olympic and Lampsa Hellenic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Technical Olympic and Lampsa Hellenic
The main advantage of trading using opposite Technical Olympic and Lampsa Hellenic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Technical Olympic position performs unexpectedly, Lampsa Hellenic 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 Lampsa Hellenic will offset losses from the drop in Lampsa Hellenic's long position.| Technical Olympic vs. National Bank of | Technical Olympic vs. Bank of Greece | Technical Olympic vs. Hellenic Telecommunications Organization | Technical Olympic vs. Profile Systems Software |
| Lampsa Hellenic vs. Performance Technologies SA | Lampsa Hellenic vs. Profile Systems Software | Lampsa Hellenic vs. As Commercial Industrial | Lampsa Hellenic vs. Athens Medical CSA |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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