Correlation Between Iktinos Hellas and Lampsa Hellenic

Can any of the company-specific risk be diversified away by investing in both Iktinos Hellas and Lampsa Hellenic 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 Lampsa Hellenic 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 Lampsa Hellenic Hotels, you can compare the effects of market volatilities on Iktinos Hellas and Lampsa Hellenic 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 Lampsa Hellenic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iktinos Hellas and Lampsa Hellenic.

Diversification Opportunities for Iktinos Hellas and Lampsa Hellenic

-0.04

Correlation Coefficient

Iktinos Hellas  Lampsa Hellenic

Good diversification

The 3 months correlation between Iktinos and Lampsa is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Iktinos Hellas SA and Lampsa Hellenic Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lampsa Hellenic Hotels 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 Lampsa Hellenic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lampsa Hellenic Hotels has no effect on the direction of Iktinos Hellas i.e., Iktinos Hellas and Lampsa Hellenic go up and down completely randomly.

Pair Corralation between Iktinos Hellas and Lampsa Hellenic

Assuming the 90 days trading horizon Iktinos Hellas SA is expected to under-perform the Lampsa Hellenic. In addition to that, Iktinos Hellas is 3.36 times more volatile than Lampsa Hellenic Hotels. It trades about -0.13 of its total potential returns per unit of risk. Lampsa Hellenic Hotels is currently generating about 0.02 per unit of volatility. If you would invest  3,700  in Lampsa Hellenic Hotels on September 5, 2024 and sell it today you would earn a total of  40.00  from holding Lampsa Hellenic Hotels or generate 1.08% return on investment over 90 days.

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

Iktinos Hellas SA  vs.  Lampsa Hellenic Hotels

Iktinos Hellas SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Iktinos Hellas SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Lampsa Hellenic Hotels

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lampsa Hellenic Hotels are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Lampsa Hellenic is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Iktinos Hellas and Lampsa Hellenic

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

The idea behind Iktinos Hellas SA and Lampsa Hellenic Hotels 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.