Correlation Between Vogiatzoglou Systems and Gr Sarantis
Can any of the company-specific risk be diversified away by investing in both Vogiatzoglou Systems and Gr Sarantis 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 Gr Sarantis 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 Gr Sarantis SA, you can compare the effects of market volatilities on Vogiatzoglou Systems and Gr Sarantis 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 Gr Sarantis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vogiatzoglou Systems and Gr Sarantis.
Diversification Opportunities for Vogiatzoglou Systems and Gr Sarantis
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vogiatzoglou and SAR is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Vogiatzoglou Systems SA and Gr Sarantis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gr Sarantis 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 Gr Sarantis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gr Sarantis SA has no effect on the direction of Vogiatzoglou Systems i.e., Vogiatzoglou Systems and Gr Sarantis go up and down completely randomly.
Pair Corralation between Vogiatzoglou Systems and Gr Sarantis
Assuming the 90 days trading horizon Vogiatzoglou Systems is expected to generate 1.15 times less return on investment than Gr Sarantis. In addition to that, Vogiatzoglou Systems is 2.13 times more volatile than Gr Sarantis SA. It trades about 0.08 of its total potential returns per unit of risk. Gr Sarantis SA is currently generating about 0.2 per unit of volatility. If you would invest 1,090 in Gr Sarantis SA on November 5, 2024 and sell it today you would earn a total of 50.00 from holding Gr Sarantis SA or generate 4.59% 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. Gr Sarantis SA
Performance |
| Timeline |
| Vogiatzoglou Systems |
| Gr Sarantis SA |
Vogiatzoglou Systems and Gr Sarantis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vogiatzoglou Systems and Gr Sarantis
The main advantage of trading using opposite Vogiatzoglou Systems and Gr Sarantis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vogiatzoglou Systems position performs unexpectedly, Gr Sarantis 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 Gr Sarantis will offset losses from the drop in Gr Sarantis' 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 |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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