Correlation Between Prodea Real and Thessaloniki Port
Can any of the company-specific risk be diversified away by investing in both Prodea Real and Thessaloniki Port 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 Prodea Real and Thessaloniki Port into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prodea Real Estate and Thessaloniki Port Authority, you can compare the effects of market volatilities on Prodea Real and Thessaloniki Port 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 Prodea Real with a short position of Thessaloniki Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prodea Real and Thessaloniki Port.
Diversification Opportunities for Prodea Real and Thessaloniki Port
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Prodea and Thessaloniki is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Prodea Real Estate and Thessaloniki Port Authority in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thessaloniki Port and Prodea Real 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 Prodea Real Estate are associated (or correlated) with Thessaloniki Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thessaloniki Port has no effect on the direction of Prodea Real i.e., Prodea Real and Thessaloniki Port go up and down completely randomly.
Pair Corralation between Prodea Real and Thessaloniki Port
Assuming the 90 days trading horizon Prodea Real is expected to generate 3.59 times less return on investment than Thessaloniki Port. In addition to that, Prodea Real is 3.54 times more volatile than Thessaloniki Port Authority. It trades about 0.02 of its total potential returns per unit of risk. Thessaloniki Port Authority is currently generating about 0.24 per unit of volatility. If you would invest 2,060 in Thessaloniki Port Authority on September 1, 2024 and sell it today you would earn a total of 130.00 from holding Thessaloniki Port Authority or generate 6.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Prodea Real Estate vs. Thessaloniki Port Authority
Performance |
| Timeline |
| Prodea Real Estate |
| Thessaloniki Port |
Prodea Real and Thessaloniki Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prodea Real and Thessaloniki Port
The main advantage of trading using opposite Prodea Real and Thessaloniki Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prodea Real position performs unexpectedly, Thessaloniki Port 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 Thessaloniki Port will offset losses from the drop in Thessaloniki Port's long position.| Prodea Real vs. Aegean Airlines SA | Prodea Real vs. Hellenic Telecommunications Organization | Prodea Real vs. Technical Olympic SA | Prodea Real vs. Optronics Technologies SA |
| Thessaloniki Port vs. Profile Systems Software | Thessaloniki Port vs. Elton International Trading | Thessaloniki Port vs. Bank of Greece | Thessaloniki Port vs. As Commercial Industrial |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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