Correlation Between Frigoglass SAIC and Autohellas

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

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

Diversification Opportunities for Frigoglass SAIC and Autohellas

0.1

Correlation Coefficient

Frigoglass SAIC  Autohellas

Average diversification

The 3 months correlation between Frigoglass and Autohellas is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Frigoglass SAIC and Autohellas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohellas SA and Frigoglass SAIC 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 Frigoglass SAIC 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 Frigoglass SAIC i.e., Frigoglass SAIC and Autohellas go up and down completely randomly.

Pair Corralation between Frigoglass SAIC and Autohellas

Assuming the 90 days trading horizon Frigoglass SAIC is expected to generate 3.37 times less return on investment than Autohellas. In addition to that, Frigoglass SAIC is 3.12 times more volatile than Autohellas SA. It trades about 0.02 of its total potential returns per unit of risk. Autohellas SA is currently generating about 0.23 per unit of volatility. If you would invest  1,038  in Autohellas SA on December 27, 2024 and sell it today you would earn a total of  228.00  from holding Autohellas SA or generate 21.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Frigoglass SAIC  vs.  Autohellas SA

Frigoglass SAIC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Frigoglass SAIC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Frigoglass SAIC may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Autohellas SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Autohellas SA are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Autohellas sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Frigoglass SAIC and Autohellas

The main advantage of trading using opposite Frigoglass SAIC and Autohellas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frigoglass SAIC 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.

The idea behind Frigoglass SAIC and Autohellas SA 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.