Correlation Between Titan Cement and Autohellas
Can any of the company-specific risk be diversified away by investing in both Titan Cement and Autohellas 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 Titan Cement and Autohellas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Titan Cement International and Autohellas SA, you can compare the effects of market volatilities on Titan Cement and Autohellas 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 Titan Cement with a short position of Autohellas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Titan Cement and Autohellas.
Diversification Opportunities for Titan Cement and Autohellas
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Titan and Autohellas is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Titan Cement International and Autohellas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohellas SA and Titan Cement 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 Titan Cement International are associated (or correlated) with Autohellas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autohellas SA has no effect on the direction of Titan Cement i.e., Titan Cement and Autohellas go up and down completely randomly.
Pair Corralation between Titan Cement and Autohellas
Assuming the 90 days trading horizon Titan Cement International is expected to generate 1.15 times more return on investment than Autohellas. However, Titan Cement is 1.15 times more volatile than Autohellas SA. It trades about 0.14 of its potential returns per unit of risk. Autohellas SA is currently generating about -0.07 per unit of risk. If you would invest 2,385 in Titan Cement International on August 28, 2024 and sell it today you would earn a total of 1,415 from holding Titan Cement International or generate 59.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Titan Cement International vs. Autohellas SA
Performance |
| Timeline |
| Titan Cement Interna |
| Autohellas SA |
Titan Cement and Autohellas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Titan Cement and Autohellas
The main advantage of trading using opposite Titan Cement and Autohellas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Titan Cement position performs unexpectedly, Autohellas 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 Autohellas will offset losses from the drop in Autohellas' long position.| Titan Cement vs. Mytilineos SA | Titan Cement vs. Motor Oil Corinth | Titan Cement vs. Hellenic Petroleum SA | Titan Cement vs. National Bank of |
| Autohellas vs. National Bank of | Autohellas vs. N Leventeris SA | Autohellas vs. Eurobank Ergasias Services | Autohellas vs. Vogiatzoglou Systems SA |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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