Correlation Between Piraeus Port and Autohellas
Can any of the company-specific risk be diversified away by investing in both Piraeus Port and Autohellas 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 Autohellas 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 Autohellas SA, you can compare the effects of market volatilities on Piraeus Port and Autohellas 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 Autohellas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Port and Autohellas.
Diversification Opportunities for Piraeus Port and Autohellas
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Piraeus and Autohellas is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Port Authority and Autohellas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohellas SA 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 Autohellas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autohellas SA has no effect on the direction of Piraeus Port i.e., Piraeus Port and Autohellas go up and down completely randomly.
Pair Corralation between Piraeus Port and Autohellas
Assuming the 90 days trading horizon Piraeus Port Authority is expected to generate 1.01 times more return on investment than Autohellas. However, Piraeus Port is 1.01 times more volatile than Autohellas SA. It trades about 0.1 of its potential returns per unit of risk. Autohellas SA is currently generating about 0.02 per unit of risk. If you would invest 1,534 in Piraeus Port Authority on August 24, 2024 and sell it today you would earn a total of 1,451 from holding Piraeus Port Authority or generate 94.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piraeus Port Authority vs. Autohellas SA
Performance |
| Timeline |
| Piraeus Port Authority |
| Autohellas SA |
Piraeus Port and Autohellas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Port and Autohellas
The main advantage of trading using opposite Piraeus Port and Autohellas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Port position performs unexpectedly, Autohellas 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 Autohellas will offset losses from the drop in Autohellas' long position.| Piraeus Port vs. Thessaloniki Port Authority | Piraeus Port vs. National Bank of | Piraeus Port vs. EL D Mouzakis | Piraeus Port vs. Lampsa Hellenic Hotels |
| Autohellas vs. Daios Plastics SA | Autohellas vs. Technical Olympic SA | Autohellas vs. Athens Medical CSA | Autohellas vs. Foodlink AE |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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