Correlation Between Public Power and Mytilineos
Can any of the company-specific risk be diversified away by investing in both Public Power and Mytilineos 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 Public Power and Mytilineos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Power and Mytilineos SA, you can compare the effects of market volatilities on Public Power and Mytilineos 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 Public Power with a short position of Mytilineos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Power and Mytilineos.
Diversification Opportunities for Public Power and Mytilineos
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Public and Mytilineos is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Public Power and Mytilineos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mytilineos SA and Public Power 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 Public Power are associated (or correlated) with Mytilineos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mytilineos SA has no effect on the direction of Public Power i.e., Public Power and Mytilineos go up and down completely randomly.
Pair Corralation between Public Power and Mytilineos
Assuming the 90 days trading horizon Public Power is expected to generate 1.05 times more return on investment than Mytilineos. However, Public Power is 1.05 times more volatile than Mytilineos SA. It trades about -0.02 of its potential returns per unit of risk. Mytilineos SA is currently generating about -0.08 per unit of risk. If you would invest 1,191 in Public Power on August 28, 2024 and sell it today you would lose (9.00) from holding Public Power or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Public Power vs. Mytilineos SA
Performance |
| Timeline |
| Public Power |
| Mytilineos SA |
Public Power and Mytilineos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Power and Mytilineos
The main advantage of trading using opposite Public Power and Mytilineos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Power position performs unexpectedly, Mytilineos 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 Mytilineos will offset losses from the drop in Mytilineos' long position.| Public Power vs. National Bank of | Public Power vs. EL D Mouzakis | Public Power vs. Lampsa Hellenic Hotels | Public Power vs. Eurobank Ergasias Services |
| Mytilineos vs. National Bank of | Mytilineos vs. EL D Mouzakis | Mytilineos vs. Lampsa Hellenic Hotels | Mytilineos vs. Eurobank Ergasias Services |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |