Correlation Between Sidma SA and Proodeftiki
Can any of the company-specific risk be diversified away by investing in both Sidma SA and Proodeftiki 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 Proodeftiki 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 Proodeftiki SA, you can compare the effects of market volatilities on Sidma SA and Proodeftiki 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 Proodeftiki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sidma SA and Proodeftiki.
Diversification Opportunities for Sidma SA and Proodeftiki
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sidma and Proodeftiki is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Sidma SA Steel and Proodeftiki SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proodeftiki 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 Proodeftiki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proodeftiki SA has no effect on the direction of Sidma SA i.e., Sidma SA and Proodeftiki go up and down completely randomly.
Pair Corralation between Sidma SA and Proodeftiki
Assuming the 90 days trading horizon Sidma SA Steel is expected to under-perform the Proodeftiki. But the stock apears to be less risky and, when comparing its historical volatility, Sidma SA Steel is 2.96 times less risky than Proodeftiki. The stock trades about -0.01 of its potential returns per unit of risk. The Proodeftiki SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 27.00 in Proodeftiki SA on September 15, 2024 and sell it today you would earn a total of 2.00 from holding Proodeftiki SA or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sidma SA Steel vs. Proodeftiki SA
Performance |
| Timeline |
| Sidma SA Steel |
| Proodeftiki SA |
Sidma SA and Proodeftiki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sidma SA and Proodeftiki
The main advantage of trading using opposite Sidma SA and Proodeftiki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sidma SA position performs unexpectedly, Proodeftiki 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 Proodeftiki will offset losses from the drop in Proodeftiki's long position.| Sidma SA vs. Optronics Technologies SA | Sidma SA vs. Piraeus Financial Holdings | Sidma SA vs. Thrace Plastics Holding | Sidma SA vs. Hellenic Telecommunications Organization |
| Proodeftiki vs. Interlife General Insurance | Proodeftiki vs. Intertech SA Inter | Proodeftiki vs. Sidma SA Steel | Proodeftiki vs. General 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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