Correlation Between Sidma SA and Mytilineos
Can any of the company-specific risk be diversified away by investing in both Sidma SA 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 Sidma SA and Mytilineos 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 Mytilineos SA, you can compare the effects of market volatilities on Sidma SA 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 Sidma SA with a short position of Mytilineos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sidma SA and Mytilineos.
Diversification Opportunities for Sidma SA and Mytilineos
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sidma and Mytilineos is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Sidma SA Steel and Mytilineos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mytilineos 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 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 Sidma SA i.e., Sidma SA and Mytilineos go up and down completely randomly.
Pair Corralation between Sidma SA and Mytilineos
Assuming the 90 days trading horizon Sidma SA Steel is expected to under-perform the Mytilineos. In addition to that, Sidma SA is 1.2 times more volatile than Mytilineos SA. It trades about -0.01 of its total potential returns per unit of risk. Mytilineos SA is currently generating about 0.07 per unit of volatility. If you would invest 1,873 in Mytilineos SA on September 3, 2024 and sell it today you would earn a total of 1,233 from holding Mytilineos SA or generate 65.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sidma SA Steel vs. Mytilineos SA
Performance |
| Timeline |
| Sidma SA Steel |
| Mytilineos SA |
Sidma SA and Mytilineos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sidma SA and Mytilineos
The main advantage of trading using opposite Sidma SA and Mytilineos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sidma SA 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.| Sidma SA vs. National Bank of | Sidma SA vs. EL D Mouzakis | Sidma SA vs. Lampsa Hellenic Hotels | Sidma SA vs. N Leventeris SA |
| Mytilineos vs. Viohalco SA | Mytilineos vs. National Bank of | Mytilineos vs. EL D Mouzakis | Mytilineos vs. Lampsa Hellenic Hotels |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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