Correlation Between Piraeus Port and Athens Medical
Can any of the company-specific risk be diversified away by investing in both Piraeus Port and Athens Medical 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 Piraeus Port and Athens Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Piraeus Port Authority and Athens Medical CSA, you can compare the effects of market volatilities on Piraeus Port and Athens Medical 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 Piraeus Port with a short position of Athens Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Port and Athens Medical.
Diversification Opportunities for Piraeus Port and Athens Medical
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Piraeus and Athens is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Port Authority and Athens Medical CSA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athens Medical CSA and Piraeus Port 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 Piraeus Port Authority are associated (or correlated) with Athens Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athens Medical CSA has no effect on the direction of Piraeus Port i.e., Piraeus Port and Athens Medical go up and down completely randomly.
Pair Corralation between Piraeus Port and Athens Medical
Assuming the 90 days trading horizon Piraeus Port Authority is expected to generate 1.35 times more return on investment than Athens Medical. However, Piraeus Port is 1.35 times more volatile than Athens Medical CSA. It trades about 0.24 of its potential returns per unit of risk. Athens Medical CSA is currently generating about 0.13 per unit of risk. If you would invest 2,800 in Piraeus Port Authority on August 28, 2024 and sell it today you would earn a total of 300.00 from holding Piraeus Port Authority or generate 10.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piraeus Port Authority vs. Athens Medical CSA
Performance |
| Timeline |
| Piraeus Port Authority |
| Athens Medical CSA |
Piraeus Port and Athens Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Port and Athens Medical
The main advantage of trading using opposite Piraeus Port and Athens Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Port position performs unexpectedly, Athens Medical 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 Athens Medical will offset losses from the drop in Athens Medical's long position.| Piraeus Port vs. National Bank of | Piraeus Port vs. EL D Mouzakis | Piraeus Port vs. Lampsa Hellenic Hotels | Piraeus Port vs. Eurobank Ergasias Services |
| Athens Medical vs. Hellenic Exchanges | Athens Medical vs. Hellenic Telecommunications Organization | Athens Medical vs. GEK TERNA Holdings | Athens Medical vs. Piraeus Port Authority |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Global Correlations Find global opportunities by holding instruments from different markets |