Correlation Between Premia SA and Gr Sarantis

Can any of the company-specific risk be diversified away by investing in both Premia SA and Gr Sarantis 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 Premia SA and Gr Sarantis into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Premia SA and Gr Sarantis

0.0

Correlation Coefficient

Premia SA  Gr Sarantis

Pay attention - limited upside

The 3 months correlation between Premia and SAR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Premia SA and Gr Sarantis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gr Sarantis SA and Premia SA 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 Premia SA are associated (or correlated) with Gr Sarantis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gr Sarantis SA has no effect on the direction of Premia SA i.e., Premia SA and Gr Sarantis go up and down completely randomly.

Pair Corralation between Premia SA and Gr Sarantis

If you would invest  1,066  in Gr Sarantis SA on December 29, 2024 and sell it today you would earn a total of  248.00  from holding Gr Sarantis SA or generate 23.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Premia SA  vs.  Gr Sarantis SA

Premia SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Premia SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Premia SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Gr Sarantis SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gr Sarantis SA are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Gr Sarantis unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Premia SA and Gr Sarantis

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

The idea behind Premia SA and Gr Sarantis 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.