Correlation Between E Pairis and Frigoglass SAIC
Can any of the company-specific risk be diversified away by investing in both E Pairis and Frigoglass SAIC 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 E Pairis and Frigoglass SAIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Pairis SA and Frigoglass SAIC, you can compare the effects of market volatilities on E Pairis and Frigoglass SAIC 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 E Pairis with a short position of Frigoglass SAIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Pairis and Frigoglass SAIC.
Diversification Opportunities for E Pairis and Frigoglass SAIC
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PAIR and Frigoglass is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding E Pairis SA and Frigoglass SAIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frigoglass SAIC and E Pairis 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 E Pairis SA are associated (or correlated) with Frigoglass SAIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frigoglass SAIC has no effect on the direction of E Pairis i.e., E Pairis and Frigoglass SAIC go up and down completely randomly.
Pair Corralation between E Pairis and Frigoglass SAIC
Assuming the 90 days trading horizon E Pairis is expected to generate 5.31 times less return on investment than Frigoglass SAIC. But when comparing it to its historical volatility, E Pairis SA is 4.01 times less risky than Frigoglass SAIC. It trades about 0.02 of its potential returns per unit of risk. Frigoglass SAIC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 44.00 in Frigoglass SAIC on October 25, 2024 and sell it today you would lose (25.00) from holding Frigoglass SAIC or give up 56.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.18% |
| Values | Daily Returns |
E Pairis SA vs. Frigoglass SAIC
Performance |
| Timeline |
| E Pairis SA |
| Frigoglass SAIC |
E Pairis and Frigoglass SAIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Pairis and Frigoglass SAIC
The main advantage of trading using opposite E Pairis and Frigoglass SAIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Pairis position performs unexpectedly, Frigoglass SAIC 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 Frigoglass SAIC will offset losses from the drop in Frigoglass SAIC's long position.| E Pairis vs. National Bank of | E Pairis vs. Bank of Greece | E Pairis vs. Athens Medical CSA | E Pairis vs. CPI Computer Peripherals |
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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