Correlation Between Optronics Technologies and Marfin Investment
Can any of the company-specific risk be diversified away by investing in both Optronics Technologies and Marfin Investment 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 Marfin Investment 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 Marfin Investment Group, you can compare the effects of market volatilities on Optronics Technologies and Marfin Investment 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 Marfin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optronics Technologies and Marfin Investment.
Diversification Opportunities for Optronics Technologies and Marfin Investment
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Optronics and Marfin is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Optronics Technologies SA and Marfin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marfin Investment 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 Marfin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marfin Investment has no effect on the direction of Optronics Technologies i.e., Optronics Technologies and Marfin Investment go up and down completely randomly.
Pair Corralation between Optronics Technologies and Marfin Investment
If you would invest 148.00 in Optronics Technologies SA on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Optronics Technologies SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Optronics Technologies SA vs. Marfin Investment Group
Performance |
| Timeline |
| Optronics Technologies |
| Marfin Investment |
Optronics Technologies and Marfin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optronics Technologies and Marfin Investment
The main advantage of trading using opposite Optronics Technologies and Marfin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optronics Technologies position performs unexpectedly, Marfin Investment 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 Marfin Investment will offset losses from the drop in Marfin Investment'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 |
| Marfin Investment vs. National Bank of | Marfin Investment vs. EL D Mouzakis | Marfin Investment vs. Lampsa Hellenic Hotels | Marfin Investment vs. Eurobank Ergasias Services |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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