Correlation Between Terna Energy and Ideal Group
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By analyzing existing cross correlation between Terna Energy Societe and Ideal Group SA, you can compare the effects of market volatilities on Terna Energy and Ideal Group 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 Terna Energy with a short position of Ideal Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Terna Energy and Ideal Group.
Diversification Opportunities for Terna Energy and Ideal Group
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Terna and Ideal is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Terna Energy Societe and Ideal Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ideal Group SA and Terna Energy 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 Terna Energy Societe are associated (or correlated) with Ideal Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ideal Group SA has no effect on the direction of Terna Energy i.e., Terna Energy and Ideal Group go up and down completely randomly.
Pair Corralation between Terna Energy and Ideal Group
Assuming the 90 days trading horizon Terna Energy is expected to generate 11.71 times less return on investment than Ideal Group. But when comparing it to its historical volatility, Terna Energy Societe is 1.23 times less risky than Ideal Group. It trades about 0.01 of its potential returns per unit of risk. Ideal Group SA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 336.00 in Ideal Group SA on September 1, 2024 and sell it today you would earn a total of 249.00 from holding Ideal Group SA or generate 74.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Terna Energy Societe vs. Ideal Group SA
Performance |
| Timeline |
| Terna Energy Societe |
| Ideal Group SA |
Terna Energy and Ideal Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Terna Energy and Ideal Group
The main advantage of trading using opposite Terna Energy and Ideal Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Terna Energy position performs unexpectedly, Ideal Group 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 Ideal Group will offset losses from the drop in Ideal Group's long position.| Terna Energy vs. Logismos Information Systems | Terna Energy vs. Lampsa Hellenic Hotels | Terna Energy vs. Hellenic Telecommunications Organization | Terna Energy vs. Interlife General Insurance |
| Ideal Group vs. Hellenic Telecommunications Organization | Ideal Group vs. Terna Energy Societe | Ideal Group vs. Motor Oil Corinth | Ideal Group vs. Public Power |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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