Correlation Between Vogiatzoglou Systems and Mytilineos
Can any of the company-specific risk be diversified away by investing in both Vogiatzoglou Systems 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 Vogiatzoglou Systems and Mytilineos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vogiatzoglou Systems SA and Mytilineos SA, you can compare the effects of market volatilities on Vogiatzoglou Systems 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 Vogiatzoglou Systems with a short position of Mytilineos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vogiatzoglou Systems and Mytilineos.
Diversification Opportunities for Vogiatzoglou Systems and Mytilineos
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vogiatzoglou and Mytilineos is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Vogiatzoglou Systems SA and Mytilineos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mytilineos SA and Vogiatzoglou Systems 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 Vogiatzoglou Systems 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 Vogiatzoglou Systems i.e., Vogiatzoglou Systems and Mytilineos go up and down completely randomly.
Pair Corralation between Vogiatzoglou Systems and Mytilineos
Assuming the 90 days trading horizon Vogiatzoglou Systems SA is expected to generate 1.96 times more return on investment than Mytilineos. However, Vogiatzoglou Systems is 1.96 times more volatile than Mytilineos SA. It trades about 0.08 of its potential returns per unit of risk. Mytilineos SA is currently generating about -0.01 per unit of risk. If you would invest 230.00 in Vogiatzoglou Systems SA on November 5, 2024 and sell it today you would earn a total of 8.00 from holding Vogiatzoglou Systems SA or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vogiatzoglou Systems SA vs. Mytilineos SA
Performance |
| Timeline |
| Vogiatzoglou Systems |
| Mytilineos SA |
Vogiatzoglou Systems and Mytilineos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vogiatzoglou Systems and Mytilineos
The main advantage of trading using opposite Vogiatzoglou Systems and Mytilineos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vogiatzoglou Systems 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.| Vogiatzoglou Systems vs. General Commercial Industrial | Vogiatzoglou Systems vs. Technical Olympic SA | Vogiatzoglou Systems vs. Bank of Greece | Vogiatzoglou Systems vs. Marfin Investment Group |
| Mytilineos vs. As Commercial Industrial | Mytilineos vs. Profile Systems Software | Mytilineos vs. Thrace Plastics Holding | Mytilineos vs. Bank of Greece |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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