Correlation Between Gr Sarantis and Hellenic Exchanges

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

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

Diversification Opportunities for Gr Sarantis and Hellenic Exchanges

0.8

Correlation Coefficient

Gr Sarantis  Hellenic Exchanges

Very poor diversification

The 3 months correlation between SAR and Hellenic is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Gr Sarantis SA and Hellenic Exchanges in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hellenic Exchanges and Gr Sarantis 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 Gr Sarantis SA are associated (or correlated) with Hellenic Exchanges. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hellenic Exchanges has no effect on the direction of Gr Sarantis i.e., Gr Sarantis and Hellenic Exchanges go up and down completely randomly.

Pair Corralation between Gr Sarantis and Hellenic Exchanges

Assuming the 90 days trading horizon Gr Sarantis is expected to generate 1.29 times less return on investment than Hellenic Exchanges. In addition to that, Gr Sarantis is 1.25 times more volatile than Hellenic Exchanges . It trades about 0.16 of its total potential returns per unit of risk. Hellenic Exchanges is currently generating about 0.27 per unit of volatility. If you would invest  450.00  in Hellenic Exchanges on December 27, 2024 and sell it today you would earn a total of  127.00  from holding Hellenic Exchanges or generate 28.22% return on investment over 90 days.

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

Gr Sarantis SA  vs.  Hellenic Exchanges

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 12 (%) 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.

Hellenic Exchanges

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Hellenic Exchanges are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Hellenic Exchanges unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gr Sarantis and Hellenic Exchanges

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

The idea behind Gr Sarantis SA and Hellenic Exchanges 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.