Correlation Between Optronics Technologies and Admie Holding
Can any of the company-specific risk be diversified away by investing in both Optronics Technologies and Admie Holding 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 Optronics Technologies and Admie Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Optronics Technologies SA and Admie Holding SA, you can compare the effects of market volatilities on Optronics Technologies and Admie Holding 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 Optronics Technologies with a short position of Admie Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optronics Technologies and Admie Holding.
Diversification Opportunities for Optronics Technologies and Admie Holding
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Optronics and Admie is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Optronics Technologies SA and Admie Holding SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Admie Holding SA and Optronics Technologies 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 Optronics Technologies SA are associated (or correlated) with Admie Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Admie Holding SA has no effect on the direction of Optronics Technologies i.e., Optronics Technologies and Admie Holding go up and down completely randomly.
Pair Corralation between Optronics Technologies and Admie Holding
If you would invest 238.00 in Admie Holding SA on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Admie Holding SA or generate 1.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Optronics Technologies SA vs. Admie Holding SA
Performance |
| Timeline |
| Optronics Technologies |
| Admie Holding SA |
Optronics Technologies and Admie Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optronics Technologies and Admie Holding
The main advantage of trading using opposite Optronics Technologies and Admie Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optronics Technologies position performs unexpectedly, Admie Holding 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 Admie Holding will offset losses from the drop in Admie Holding's long position.| Optronics Technologies vs. Admie Holding SA | Optronics Technologies vs. Coca Cola HBC AG | Optronics Technologies vs. Quest Holdings SA | Optronics Technologies vs. Motor Oil Corinth |
| Admie Holding vs. Coca Cola HBC AG | Admie Holding vs. Quest Holdings SA | Admie Holding vs. Motor Oil Corinth | Admie Holding 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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