Correlation Between Iktinos Hellas and Avax SA

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

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

Diversification Opportunities for Iktinos Hellas and Avax SA

0.37

Correlation Coefficient

Iktinos Hellas  Avax SA

Weak diversification

The 3 months correlation between Iktinos and Avax is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Iktinos Hellas SA and Avax SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avax SA and Iktinos Hellas 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 Iktinos Hellas SA are associated (or correlated) with Avax SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avax SA has no effect on the direction of Iktinos Hellas i.e., Iktinos Hellas and Avax SA go up and down completely randomly.

Pair Corralation between Iktinos Hellas and Avax SA

Assuming the 90 days trading horizon Iktinos Hellas is expected to generate 3.5 times less return on investment than Avax SA. But when comparing it to its historical volatility, Iktinos Hellas SA is 1.02 times less risky than Avax SA. It trades about 0.07 of its potential returns per unit of risk. Avax SA is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  153.00  in Avax SA on December 28, 2024 and sell it today you would earn a total of  65.00  from holding Avax SA or generate 42.48% return on investment over 90 days.

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

Iktinos Hellas SA  vs.  Avax SA

Iktinos Hellas SA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Iktinos Hellas SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Iktinos Hellas may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Avax SA

Risk-Adjusted Performance

Solid

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

Pair Trading with Iktinos Hellas and Avax SA

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

The idea behind Iktinos Hellas SA and Avax 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.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.