Correlation Between Sidma SA and Technical Olympic
Can any of the company-specific risk be diversified away by investing in both Sidma SA and Technical Olympic 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 Technical Olympic 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 Technical Olympic SA, you can compare the effects of market volatilities on Sidma SA and Technical Olympic 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 Technical Olympic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sidma SA and Technical Olympic.
Diversification Opportunities for Sidma SA and Technical Olympic
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sidma and Technical is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Sidma SA Steel and Technical Olympic SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technical Olympic 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 Technical Olympic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technical Olympic has no effect on the direction of Sidma SA i.e., Sidma SA and Technical Olympic go up and down completely randomly.
Pair Corralation between Sidma SA and Technical Olympic
Assuming the 90 days trading horizon Sidma SA Steel is expected to under-perform the Technical Olympic. In addition to that, Sidma SA is 1.61 times more volatile than Technical Olympic SA. It trades about -0.13 of its total potential returns per unit of risk. Technical Olympic SA is currently generating about -0.17 per unit of volatility. If you would invest 244.00 in Technical Olympic SA on August 29, 2024 and sell it today you would lose (12.00) from holding Technical Olympic SA or give up 4.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sidma SA Steel vs. Technical Olympic SA
Performance |
| Timeline |
| Sidma SA Steel |
| Technical Olympic |
Sidma SA and Technical Olympic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sidma SA and Technical Olympic
The main advantage of trading using opposite Sidma SA and Technical Olympic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sidma SA position performs unexpectedly, Technical Olympic 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 Technical Olympic will offset losses from the drop in Technical Olympic's long position.| Sidma SA vs. National Bank of | Sidma SA vs. EL D Mouzakis | Sidma SA vs. Lampsa Hellenic Hotels | Sidma SA vs. Eurobank Ergasias Services |
| Technical Olympic vs. Interlife General Insurance | Technical Olympic vs. National Bank of | Technical Olympic vs. Hellenic Telecommunications Organization | Technical Olympic vs. Marfin Investment Group |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stocks Directory Find actively traded stocks across global markets |