Correlation Between Hellenic Telecommunicatio and Gannett

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

By analyzing existing cross correlation between Hellenic Telecommunications Org and Gannett Co, you can compare the effects of market volatilities on Hellenic Telecommunicatio and Gannett 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 Hellenic Telecommunicatio with a short position of Gannett. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hellenic Telecommunicatio and Gannett.

Diversification Opportunities for Hellenic Telecommunicatio and Gannett

0.43

Correlation Coefficient

Hellenic Telecommunicatio  Gannett

Very weak diversification

The 3 months correlation between Hellenic and Gannett is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hellenic Telecommunications Or and Gannett Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gannett and Hellenic Telecommunicatio 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 Hellenic Telecommunications Org are associated (or correlated) with Gannett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gannett has no effect on the direction of Hellenic Telecommunicatio i.e., Hellenic Telecommunicatio and Gannett go up and down completely randomly.

Pair Corralation between Hellenic Telecommunicatio and Gannett

Assuming the 90 days horizon Hellenic Telecommunicatio is expected to generate 3.83 times less return on investment than Gannett. But when comparing it to its historical volatility, Hellenic Telecommunications Org is 1.51 times less risky than Gannett. It trades about 0.03 of its potential returns per unit of risk. Gannett Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  209.00  in Gannett Co on October 5, 2024 and sell it today you would earn a total of  310.50  from holding Gannett Co or generate 148.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.78%
Values	Daily Returns

Hellenic Telecommunications Or  vs.  Gannett Co

Hellenic Telecommunicatio

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hellenic Telecommunications Org has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile 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.

Gannett

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gannett Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Gannett is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Hellenic Telecommunicatio and Gannett

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

The idea behind Hellenic Telecommunications Org and Gannett Co 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.