Correlation Between Greek Organization and Austriacard Holdings

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

By analyzing existing cross correlation between Greek Organization of and Austriacard Holdings AG, you can compare the effects of market volatilities on Greek Organization and Austriacard 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 Greek Organization with a short position of Austriacard Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greek Organization and Austriacard Holdings.

Diversification Opportunities for Greek Organization and Austriacard Holdings

0.66

Correlation Coefficient

Greek Organization  Austriacard Holdings

Poor diversification

The 3 months correlation between Greek and Austriacard is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Greek Organization of and Austriacard Holdings AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austriacard Holdings and Greek Organization 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 Greek Organization of are associated (or correlated) with Austriacard Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austriacard Holdings has no effect on the direction of Greek Organization i.e., Greek Organization and Austriacard Holdings go up and down completely randomly.

Pair Corralation between Greek Organization and Austriacard Holdings

Assuming the 90 days trading horizon Greek Organization of is expected to generate 0.69 times more return on investment than Austriacard Holdings. However, Greek Organization of is 1.45 times less risky than Austriacard Holdings. It trades about 0.07 of its potential returns per unit of risk. Austriacard Holdings AG is currently generating about 0.0 per unit of risk. If you would invest  1,175  in Greek Organization of on December 4, 2024 and sell it today you would earn a total of  535.00  from holding Greek Organization of or generate 45.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.77%
Values	Daily Returns

Greek Organization of  vs.  Austriacard Holdings AG

Greek Organization

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Greek Organization of are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Greek Organization may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Austriacard Holdings

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Austriacard Holdings AG are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Austriacard Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Greek Organization and Austriacard Holdings

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

The idea behind Greek Organization of and Austriacard Holdings AG 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.