Correlation Between Viohalco and Mytilineos
Can any of the company-specific risk be diversified away by investing in both Viohalco and Mytilineos 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 Viohalco and Mytilineos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viohalco SA and Mytilineos SA, you can compare the effects of market volatilities on Viohalco and Mytilineos 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 Viohalco with a short position of Mytilineos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viohalco and Mytilineos.
Diversification Opportunities for Viohalco and Mytilineos
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Viohalco and Mytilineos is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Viohalco SA and Mytilineos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mytilineos SA and Viohalco 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 Viohalco SA are associated (or correlated) with Mytilineos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mytilineos SA has no effect on the direction of Viohalco i.e., Viohalco and Mytilineos go up and down completely randomly.
Pair Corralation between Viohalco and Mytilineos
Assuming the 90 days trading horizon Viohalco SA is expected to generate 1.22 times more return on investment than Mytilineos. However, Viohalco is 1.22 times more volatile than Mytilineos SA. It trades about -0.06 of its potential returns per unit of risk. Mytilineos SA is currently generating about -0.11 per unit of risk. If you would invest 537.00 in Viohalco SA on August 30, 2024 and sell it today you would lose (15.00) from holding Viohalco SA or give up 2.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viohalco SA vs. Mytilineos SA
Performance |
| Timeline |
| Viohalco SA |
| Mytilineos SA |
Viohalco and Mytilineos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viohalco and Mytilineos
The main advantage of trading using opposite Viohalco and Mytilineos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viohalco position performs unexpectedly, Mytilineos 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 Mytilineos will offset losses from the drop in Mytilineos' long position.| Viohalco vs. Cenergy Holdings SA | Viohalco vs. Van de Velde | Viohalco vs. NV Bekaert SA | Viohalco vs. Econocom Group SANV |
| Mytilineos vs. Elvalhalcor Hellenic Copper | Mytilineos vs. Thrace Plastics Holding | Mytilineos vs. Optronics Technologies SA | Mytilineos vs. Eurobank Ergasias Services |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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