Correlation Between Kiriacoulis Mediterranean and Fourlis Holdings

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

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

Diversification Opportunities for Kiriacoulis Mediterranean and Fourlis Holdings

0.72

Correlation Coefficient

Kiriacoulis Mediterranean  Fourlis Holdings

Poor diversification

The 3 months correlation between Kiriacoulis and Fourlis is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kiriacoulis Mediterranean Crui and Fourlis Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fourlis Holdings and Kiriacoulis Mediterranean 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 Kiriacoulis Mediterranean Cruises are associated (or correlated) with Fourlis Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fourlis Holdings has no effect on the direction of Kiriacoulis Mediterranean i.e., Kiriacoulis Mediterranean and Fourlis Holdings go up and down completely randomly.

Pair Corralation between Kiriacoulis Mediterranean and Fourlis Holdings

Assuming the 90 days trading horizon Kiriacoulis Mediterranean is expected to generate 1.55 times less return on investment than Fourlis Holdings. But when comparing it to its historical volatility, Kiriacoulis Mediterranean Cruises is 1.29 times less risky than Fourlis Holdings. It trades about 0.13 of its potential returns per unit of risk. Fourlis Holdings SA is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  379.00  in Fourlis Holdings SA on October 11, 2024 and sell it today you would earn a total of  12.00  from holding Fourlis Holdings SA or generate 3.17% return on investment over 90 days.

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

Kiriacoulis Mediterranean Crui  vs.  Fourlis Holdings SA

Kiriacoulis Mediterranean

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kiriacoulis Mediterranean Cruises has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Kiriacoulis Mediterranean is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Fourlis Holdings

Risk-Adjusted Performance

3 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fourlis Holdings SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Fourlis Holdings is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Kiriacoulis Mediterranean and Fourlis Holdings

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

The idea behind Kiriacoulis Mediterranean Cruises and Fourlis Holdings 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.