Correlation Between Technical Olympic and Vogiatzoglou Systems
Can any of the company-specific risk be diversified away by investing in both Technical Olympic and Vogiatzoglou Systems 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 Vogiatzoglou Systems 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 Vogiatzoglou Systems SA, you can compare the effects of market volatilities on Technical Olympic and Vogiatzoglou Systems 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 Vogiatzoglou Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Technical Olympic and Vogiatzoglou Systems.
Diversification Opportunities for Technical Olympic and Vogiatzoglou Systems
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Technical and Vogiatzoglou is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Technical Olympic SA and Vogiatzoglou Systems SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vogiatzoglou Systems 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 Vogiatzoglou Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vogiatzoglou Systems has no effect on the direction of Technical Olympic i.e., Technical Olympic and Vogiatzoglou Systems go up and down completely randomly.
Pair Corralation between Technical Olympic and Vogiatzoglou Systems
Assuming the 90 days trading horizon Technical Olympic is expected to generate 1.63 times less return on investment than Vogiatzoglou Systems. But when comparing it to its historical volatility, Technical Olympic SA is 2.39 times less risky than Vogiatzoglou Systems. It trades about 0.12 of its potential returns per unit of risk. Vogiatzoglou Systems SA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 230.00 in Vogiatzoglou Systems SA on November 5, 2024 and sell it today you would earn a total of 8.00 from holding Vogiatzoglou Systems SA or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Technical Olympic SA vs. Vogiatzoglou Systems SA
Performance |
| Timeline |
| Technical Olympic |
| Vogiatzoglou Systems |
Technical Olympic and Vogiatzoglou Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Technical Olympic and Vogiatzoglou Systems
The main advantage of trading using opposite Technical Olympic and Vogiatzoglou Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Technical Olympic position performs unexpectedly, Vogiatzoglou Systems 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 Vogiatzoglou Systems will offset losses from the drop in Vogiatzoglou Systems' long position.| Technical Olympic vs. Profile Systems Software | Technical Olympic vs. Elton International Trading | Technical Olympic vs. Optronics Technologies SA | Technical Olympic vs. Sidma SA Steel |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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