Correlation Between Profile Systems and Autohellas
Can any of the company-specific risk be diversified away by investing in both Profile Systems 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 Profile Systems and Autohellas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Profile Systems Software and Autohellas SA, you can compare the effects of market volatilities on Profile Systems 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 Profile Systems with a short position of Autohellas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Profile Systems and Autohellas.
Diversification Opportunities for Profile Systems and Autohellas
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Profile and Autohellas is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Profile Systems Software and Autohellas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohellas SA and Profile Systems 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 Profile Systems Software 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 Profile Systems i.e., Profile Systems and Autohellas go up and down completely randomly.
Pair Corralation between Profile Systems and Autohellas
Assuming the 90 days trading horizon Profile Systems Software is expected to generate 0.92 times more return on investment than Autohellas. However, Profile Systems Software is 1.09 times less risky than Autohellas. It trades about -0.16 of its potential returns per unit of risk. Autohellas SA is currently generating about -0.25 per unit of risk. If you would invest 537.00 in Profile Systems Software on August 28, 2024 and sell it today you would lose (26.00) from holding Profile Systems Software or give up 4.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Profile Systems Software vs. Autohellas SA
Performance |
| Timeline |
| Profile Systems Software |
| Autohellas SA |
Profile Systems and Autohellas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Profile Systems and Autohellas
The main advantage of trading using opposite Profile Systems and Autohellas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Profile Systems 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.| Profile Systems vs. Terna Energy Societe | Profile Systems vs. Mytilineos SA | Profile Systems vs. Public Power | Profile Systems vs. Autohellas SA |
| Autohellas vs. Intertech SA Inter | Autohellas vs. Hellenic Telecommunications Organization | Autohellas vs. Profile Systems Software | Autohellas 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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