Correlation Between Gr Sarantis and Mytilineos

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

Diversification Opportunities for Gr Sarantis and Mytilineos

0.29

Correlation Coefficient

Gr Sarantis  Mytilineos

Modest diversification

The 3 months correlation between SAR and Mytilineos is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Gr Sarantis SA and Mytilineos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mytilineos SA 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 Mytilineos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mytilineos SA has no effect on the direction of Gr Sarantis i.e., Gr Sarantis and Mytilineos go up and down completely randomly.

Pair Corralation between Gr Sarantis and Mytilineos

Assuming the 90 days trading horizon Gr Sarantis is expected to generate 4.85 times less return on investment than Mytilineos. But when comparing it to its historical volatility, Gr Sarantis SA is 1.28 times less risky than Mytilineos. It trades about 0.02 of its potential returns per unit of risk. Mytilineos SA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  3,266  in Mytilineos SA on October 10, 2024 and sell it today you would earn a total of  222.00  from holding Mytilineos SA or generate 6.8% return on investment over 90 days.

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

Gr Sarantis SA  vs.  Mytilineos SA

Gr Sarantis SA

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Gr Sarantis SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Gr Sarantis is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Mytilineos SA

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mytilineos SA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Mytilineos may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Gr Sarantis and Mytilineos

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

The idea behind Gr Sarantis SA and Mytilineos 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.