Correlation Between Vogiatzoglou Systems and Elton International

Can any of the company-specific risk be diversified away by investing in both Vogiatzoglou Systems and Elton International 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 Vogiatzoglou Systems and Elton International into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Vogiatzoglou Systems and Elton International

-0.2

Correlation Coefficient

Vogiatzoglou Systems  Elton International

Good diversification

The 3 months correlation between Vogiatzoglou and Elton is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Vogiatzoglou Systems SA and Elton International Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elton International and Vogiatzoglou Systems 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 Vogiatzoglou Systems SA are associated (or correlated) with Elton International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elton International has no effect on the direction of Vogiatzoglou Systems i.e., Vogiatzoglou Systems and Elton International go up and down completely randomly.

Pair Corralation between Vogiatzoglou Systems and Elton International

Assuming the 90 days trading horizon Vogiatzoglou Systems is expected to generate 5.75 times less return on investment than Elton International. In addition to that, Vogiatzoglou Systems is 1.41 times more volatile than Elton International Trading. It trades about 0.01 of its total potential returns per unit of risk. Elton International Trading is currently generating about 0.08 per unit of volatility. If you would invest  172.00  in Elton International Trading on October 27, 2024 and sell it today you would earn a total of  12.00  from holding Elton International Trading or generate 6.98% return on investment over 90 days.

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

Vogiatzoglou Systems SA  vs.  Elton International Trading

Vogiatzoglou Systems

Risk-Adjusted Performance

0 of 100

Weak

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

Elton International

Risk-Adjusted Performance

6 of 100

Modest

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

Pair Trading with Vogiatzoglou Systems and Elton International

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

The idea behind Vogiatzoglou Systems SA and Elton International Trading 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 Commodity Directory module to find actively traded commodities issued by global exchanges.