Correlation Between Ekter SA and EL D

Can any of the company-specific risk be diversified away by investing in both Ekter SA and EL D 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 Ekter SA and EL D into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ekter SA and EL D Mouzakis, you can compare the effects of market volatilities on Ekter SA and EL D 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 Ekter SA with a short position of EL D. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekter SA and EL D.

Diversification Opportunities for Ekter SA and EL D

-0.41

Correlation Coefficient

Ekter SA  EL D

Very good diversification

The 3 months correlation between Ekter and MOYZK is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ekter SA and EL D Mouzakis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EL D Mouzakis and Ekter SA 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 Ekter SA are associated (or correlated) with EL D. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EL D Mouzakis has no effect on the direction of Ekter SA i.e., Ekter SA and EL D go up and down completely randomly.

Pair Corralation between Ekter SA and EL D

Assuming the 90 days trading horizon Ekter SA is expected to generate 1.26 times more return on investment than EL D. However, Ekter SA is 1.26 times more volatile than EL D Mouzakis. It trades about 0.07 of its potential returns per unit of risk. EL D Mouzakis is currently generating about -0.05 per unit of risk. If you would invest  180.00  in Ekter SA on December 30, 2024 and sell it today you would earn a total of  19.00  from holding Ekter SA or generate 10.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Ekter SA  vs.  EL D Mouzakis

Ekter SA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ekter SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Ekter SA sustained solid returns over the last few months and may actually be approaching a breakup point.

EL D Mouzakis

Risk-Adjusted Performance

Very Weak

Over the last 90 days EL D Mouzakis has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Ekter SA and EL D

The main advantage of trading using opposite Ekter SA and EL D positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekter SA position performs unexpectedly, EL D 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 EL D will offset losses from the drop in EL D's long position.

The idea behind Ekter SA and EL D Mouzakis pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.