Correlation Between Papoutsanis and Kri Kri
Can any of the company-specific risk be diversified away by investing in both Papoutsanis and Kri Kri 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 Papoutsanis and Kri Kri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Papoutsanis SA and Kri Kri Milk Industry, you can compare the effects of market volatilities on Papoutsanis and Kri Kri 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 Papoutsanis with a short position of Kri Kri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Papoutsanis and Kri Kri.
Diversification Opportunities for Papoutsanis and Kri Kri
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Papoutsanis and Kri is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Papoutsanis SA and Kri Kri Milk Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kri Kri Milk and Papoutsanis 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 Papoutsanis SA are associated (or correlated) with Kri Kri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kri Kri Milk has no effect on the direction of Papoutsanis i.e., Papoutsanis and Kri Kri go up and down completely randomly.
Pair Corralation between Papoutsanis and Kri Kri
Assuming the 90 days trading horizon Papoutsanis SA is expected to generate 0.5 times more return on investment than Kri Kri. However, Papoutsanis SA is 2.02 times less risky than Kri Kri. It trades about 0.2 of its potential returns per unit of risk. Kri Kri Milk Industry is currently generating about 0.08 per unit of risk. If you would invest 225.00 in Papoutsanis SA on August 31, 2024 and sell it today you would earn a total of 11.00 from holding Papoutsanis SA or generate 4.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Papoutsanis SA vs. Kri Kri Milk Industry
Performance |
| Timeline |
| Papoutsanis SA |
| Kri Kri Milk |
Papoutsanis and Kri Kri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Papoutsanis and Kri Kri
The main advantage of trading using opposite Papoutsanis and Kri Kri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Papoutsanis position performs unexpectedly, Kri Kri 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 Kri Kri will offset losses from the drop in Kri Kri's long position.| Papoutsanis vs. Kri Kri Milk Industry | Papoutsanis vs. Hellenic Petroleum SA | Papoutsanis vs. Aegean Airlines SA | Papoutsanis vs. Mytilineos SA |
| Kri Kri vs. Motor Oil Corinth | Kri Kri vs. Mytilineos SA | Kri Kri vs. Gr Sarantis SA | Kri Kri vs. Aegean Airlines SA |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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