Correlation Between Terna Energy and Public Power
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By analyzing existing cross correlation between Terna Energy Societe and Public Power, you can compare the effects of market volatilities on Terna Energy and Public Power 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 Public Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Terna Energy and Public Power.
Diversification Opportunities for Terna Energy and Public Power
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Terna and Public is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Terna Energy Societe and Public Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Power 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 Public Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Power has no effect on the direction of Terna Energy i.e., Terna Energy and Public Power go up and down completely randomly.
Pair Corralation between Terna Energy and Public Power
Assuming the 90 days trading horizon Terna Energy is expected to generate 38.94 times less return on investment than Public Power. But when comparing it to its historical volatility, Terna Energy Societe is 1.36 times less risky than Public Power. It trades about 0.0 of its potential returns per unit of risk. Public Power is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 701.00 in Public Power on August 28, 2024 and sell it today you would earn a total of 481.00 from holding Public Power or generate 68.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Terna Energy Societe vs. Public Power
Performance |
| Timeline |
| Terna Energy Societe |
| Public Power |
Terna Energy and Public Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Terna Energy and Public Power
The main advantage of trading using opposite Terna Energy and Public Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Terna Energy position performs unexpectedly, Public Power 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 Public Power will offset losses from the drop in Public Power's long position.| Terna Energy vs. National Bank of | Terna Energy vs. EL D Mouzakis | Terna Energy vs. Lampsa Hellenic Hotels | Terna Energy vs. Eurobank Ergasias Services |
| Public Power vs. Mytilineos SA | Public Power vs. Greek Organization of | Public Power vs. Hellenic Telecommunications Organization | Public Power vs. Alpha Services and |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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