Correlation Between Lampsa Hellenic and Public Power
Can any of the company-specific risk be diversified away by investing in both Lampsa Hellenic and Public Power 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 Lampsa Hellenic and Public Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lampsa Hellenic Hotels and Public Power, you can compare the effects of market volatilities on Lampsa Hellenic and Public Power 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 Lampsa Hellenic with a short position of Public Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lampsa Hellenic and Public Power.
Diversification Opportunities for Lampsa Hellenic and Public Power
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lampsa and Public is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Lampsa Hellenic Hotels and Public Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Power and Lampsa Hellenic 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 Lampsa Hellenic Hotels are associated (or correlated) with Public Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Power has no effect on the direction of Lampsa Hellenic i.e., Lampsa Hellenic and Public Power go up and down completely randomly.
Pair Corralation between Lampsa Hellenic and Public Power
Assuming the 90 days trading horizon Lampsa Hellenic is expected to generate 25.78 times less return on investment than Public Power. But when comparing it to its historical volatility, Lampsa Hellenic Hotels is 3.13 times less risky than Public Power. It trades about 0.02 of its potential returns per unit of risk. Public Power is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,213 in Public Power on December 30, 2024 and sell it today you would earn a total of 193.00 from holding Public Power or generate 15.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Lampsa Hellenic Hotels vs. Public Power
Performance |
Timeline |
Lampsa Hellenic Hotels |
Public Power |
Lampsa Hellenic and Public Power Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lampsa Hellenic and Public Power
The main advantage of trading using opposite Lampsa Hellenic and Public Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lampsa Hellenic position performs unexpectedly, Public Power 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 Public Power will offset losses from the drop in Public Power's long position.Lampsa Hellenic vs. Logismos Information Systems | Lampsa Hellenic vs. Optima bank SA | Lampsa Hellenic vs. Marfin Investment Group | Lampsa Hellenic vs. Elvalhalcor Hellenic Copper |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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