Correlation Between Autohellas and N Leventeris
Can any of the company-specific risk be diversified away by investing in both Autohellas and N Leventeris 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 Autohellas and N Leventeris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Autohellas SA and N Leventeris SA, you can compare the effects of market volatilities on Autohellas and N Leventeris 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 Autohellas with a short position of N Leventeris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autohellas and N Leventeris.
Diversification Opportunities for Autohellas and N Leventeris
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Autohellas and LEBEP is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Autohellas SA and N Leventeris SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on N Leventeris SA and Autohellas 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 Autohellas SA are associated (or correlated) with N Leventeris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of N Leventeris SA has no effect on the direction of Autohellas i.e., Autohellas and N Leventeris go up and down completely randomly.
Pair Corralation between Autohellas and N Leventeris
Assuming the 90 days trading horizon Autohellas is expected to generate 35.96 times less return on investment than N Leventeris. But when comparing it to its historical volatility, Autohellas SA is 5.38 times less risky than N Leventeris. It trades about 0.03 of its potential returns per unit of risk. N Leventeris SA is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 21.00 in N Leventeris SA on November 5, 2024 and sell it today you would earn a total of 5.00 from holding N Leventeris SA or generate 23.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Autohellas SA vs. N Leventeris SA
Performance |
| Timeline |
| Autohellas SA |
| N Leventeris SA |
Autohellas and N Leventeris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Autohellas and N Leventeris
The main advantage of trading using opposite Autohellas and N Leventeris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autohellas position performs unexpectedly, N Leventeris 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 N Leventeris will offset losses from the drop in N Leventeris' long position.| Autohellas vs. Interlife General Insurance | Autohellas vs. Karelia Tobacco | Autohellas vs. Foodlink AE | Autohellas vs. As Commercial Industrial |
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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 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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