Correlation Between Optronics Technologies and Lampsa Hellenic
Can any of the company-specific risk be diversified away by investing in both Optronics Technologies 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 Optronics Technologies and Lampsa Hellenic 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 Lampsa Hellenic Hotels, you can compare the effects of market volatilities on Optronics Technologies 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 Optronics Technologies with a short position of Lampsa Hellenic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optronics Technologies and Lampsa Hellenic.
Diversification Opportunities for Optronics Technologies and Lampsa Hellenic
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Optronics and Lampsa is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Optronics Technologies 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 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 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 Optronics Technologies i.e., Optronics Technologies and Lampsa Hellenic go up and down completely randomly.
Pair Corralation between Optronics Technologies and Lampsa Hellenic
If you would invest 3,740 in Lampsa Hellenic Hotels on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Lampsa Hellenic Hotels or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Optronics Technologies SA vs. Lampsa Hellenic Hotels
Performance |
| Timeline |
| Optronics Technologies |
| Lampsa Hellenic Hotels |
Optronics Technologies and Lampsa Hellenic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optronics Technologies and Lampsa Hellenic
The main advantage of trading using opposite Optronics Technologies and Lampsa Hellenic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optronics Technologies 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.| 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 |
| Lampsa Hellenic vs. Piraeus Financial Holdings | Lampsa Hellenic vs. Marfin Investment Group | Lampsa Hellenic vs. As Commercial Industrial | Lampsa Hellenic vs. Thrace Plastics Holding |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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