Correlation Between Marfin Investment and EL D

Can any of the company-specific risk be diversified away by investing in both Marfin Investment and EL D 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 Marfin Investment and EL D into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Marfin Investment Group and EL D Mouzakis, you can compare the effects of market volatilities on Marfin Investment and EL D 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 Marfin Investment with a short position of EL D. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marfin Investment and EL D.

Diversification Opportunities for Marfin Investment and EL D

0.65

Correlation Coefficient

Marfin Investment  EL D

Poor diversification

The 3 months correlation between Marfin and MOYZK is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Marfin Investment Group and EL D Mouzakis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EL D Mouzakis and Marfin Investment 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 Marfin Investment Group are associated (or correlated) with EL D. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EL D Mouzakis has no effect on the direction of Marfin Investment i.e., Marfin Investment and EL D go up and down completely randomly.

Pair Corralation between Marfin Investment and EL D

Assuming the 90 days trading horizon Marfin Investment Group is expected to generate 0.51 times more return on investment than EL D. However, Marfin Investment Group is 1.96 times less risky than EL D. It trades about -0.03 of its potential returns per unit of risk. EL D Mouzakis is currently generating about -0.05 per unit of risk. If you would invest  288.00  in Marfin Investment Group on December 29, 2024 and sell it today you would lose (7.00) from holding Marfin Investment Group or give up 2.43% of portfolio value over 90 days.

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

Marfin Investment Group  vs.  EL D Mouzakis

Marfin Investment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marfin Investment Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Marfin Investment is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

EL D Mouzakis

Risk-Adjusted Performance

Very Weak

Over the last 90 days EL D Mouzakis has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Marfin Investment and EL D

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

The idea behind Marfin Investment Group and EL D Mouzakis 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.