Correlation Between Lampsa Hellenic and Vogiatzoglou Systems

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

Diversification Opportunities for Lampsa Hellenic and Vogiatzoglou Systems

-0.46

Correlation Coefficient

Lampsa Hellenic  Vogiatzoglou Systems

Very good diversification

The 3 months correlation between Lampsa and Vogiatzoglou is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Lampsa Hellenic Hotels and Vogiatzoglou Systems SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vogiatzoglou Systems 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 Vogiatzoglou Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vogiatzoglou Systems has no effect on the direction of Lampsa Hellenic i.e., Lampsa Hellenic and Vogiatzoglou Systems go up and down completely randomly.

Pair Corralation between Lampsa Hellenic and Vogiatzoglou Systems

Assuming the 90 days trading horizon Lampsa Hellenic Hotels is expected to under-perform the Vogiatzoglou Systems. But the stock apears to be less risky and, when comparing its historical volatility, Lampsa Hellenic Hotels is 3.68 times less risky than Vogiatzoglou Systems. The stock trades about -0.07 of its potential returns per unit of risk. The Vogiatzoglou Systems SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  214.00  in Vogiatzoglou Systems SA on December 26, 2024 and sell it today you would earn a total of  16.00  from holding Vogiatzoglou Systems SA or generate 7.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Lampsa Hellenic Hotels  vs.  Vogiatzoglou Systems SA

Lampsa Hellenic Hotels

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lampsa Hellenic Hotels has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Lampsa Hellenic is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Vogiatzoglou Systems

Risk-Adjusted Performance

Modest

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

Pair Trading with Lampsa Hellenic and Vogiatzoglou Systems

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

The idea behind Lampsa Hellenic Hotels and Vogiatzoglou Systems 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.