Correlation Between Sidma SA and Elastron
Can any of the company-specific risk be diversified away by investing in both Sidma SA and Elastron 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 Sidma SA and Elastron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sidma SA Steel and Elastron SA , you can compare the effects of market volatilities on Sidma SA and Elastron 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 Sidma SA with a short position of Elastron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sidma SA and Elastron.
Diversification Opportunities for Sidma SA and Elastron
Very weak diversification
The 3 months correlation between Sidma and Elastron is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Sidma SA Steel and Elastron SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elastron SA and Sidma SA 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 Sidma SA Steel are associated (or correlated) with Elastron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elastron SA has no effect on the direction of Sidma SA i.e., Sidma SA and Elastron go up and down completely randomly.
Pair Corralation between Sidma SA and Elastron
Assuming the 90 days trading horizon Sidma SA Steel is expected to generate 1.38 times more return on investment than Elastron. However, Sidma SA is 1.38 times more volatile than Elastron SA . It trades about -0.05 of its potential returns per unit of risk. Elastron SA is currently generating about -0.13 per unit of risk. If you would invest 158.00 in Sidma SA Steel on September 2, 2024 and sell it today you would lose (4.00) from holding Sidma SA Steel or give up 2.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sidma SA Steel vs. Elastron SA
Performance |
| Timeline |
| Sidma SA Steel |
| Elastron SA |
Sidma SA and Elastron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sidma SA and Elastron
The main advantage of trading using opposite Sidma SA and Elastron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sidma SA position performs unexpectedly, Elastron 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 Elastron will offset losses from the drop in Elastron's long position.| Sidma SA vs. CPI Computer Peripherals | Sidma SA vs. Hellenic Telecommunications Organization | Sidma SA vs. Optronics Technologies SA | Sidma SA vs. Intertech SA Inter |
| Elastron vs. Thrace Plastics Holding | Elastron vs. GEK TERNA Holdings | Elastron vs. Motor Oil Corinth | Elastron vs. Hellenic Petroleum SA |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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