Correlation Between Performance Technologies and N Leventeris
Can any of the company-specific risk be diversified away by investing in both Performance Technologies 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 Performance Technologies and N Leventeris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Performance Technologies SA and N Leventeris SA, you can compare the effects of market volatilities on Performance Technologies 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 Performance Technologies with a short position of N Leventeris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performance Technologies and N Leventeris.
Diversification Opportunities for Performance Technologies and N Leventeris
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Performance and LEBEP is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Performance Technologies 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 Performance 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 Performance Technologies 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 Performance Technologies i.e., Performance Technologies and N Leventeris go up and down completely randomly.
Pair Corralation between Performance Technologies and N Leventeris
Assuming the 90 days trading horizon Performance Technologies is expected to generate 1.53 times less return on investment than N Leventeris. But when comparing it to its historical volatility, Performance Technologies SA is 2.67 times less risky than N Leventeris. It trades about 0.05 of its potential returns per unit of risk. N Leventeris SA is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 25.00 in N Leventeris SA on September 2, 2024 and sell it today you would earn a total of 0.00 from holding N Leventeris SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Performance Technologies SA vs. N Leventeris SA
Performance |
| Timeline |
| Performance Technologies |
| N Leventeris SA |
Performance Technologies and N Leventeris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Performance Technologies and N Leventeris
The main advantage of trading using opposite Performance Technologies and N Leventeris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performance Technologies 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.| Performance Technologies vs. Quest Holdings SA | Performance Technologies vs. CPI Computer Peripherals | Performance Technologies vs. National Bank of | Performance Technologies vs. EL D Mouzakis |
| N Leventeris vs. Thrace Plastics Holding | N Leventeris vs. Daios Plastics SA | N Leventeris vs. Hellenic Telecommunications Organization | N Leventeris vs. Elton International Trading |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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