Correlation Between Vogiatzoglou Systems and EL D

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

Diversification Opportunities for Vogiatzoglou Systems and EL D

0.0

Correlation Coefficient

Vogiatzoglou Systems  EL D

Pay attention - limited upside

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

Pair Corralation between Vogiatzoglou Systems and EL D

If you would invest (100.00) in Vogiatzoglou Systems SA on October 24, 2024 and sell it today you would earn a total of  100.00  from holding Vogiatzoglou Systems SA or generate -100.0% return on investment over 90 days.

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

Vogiatzoglou Systems SA  vs.  EL D Mouzakis

Vogiatzoglou Systems

Risk-Adjusted Performance

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Insignificant

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.

EL D Mouzakis

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EL D Mouzakis has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Vogiatzoglou Systems and EL D

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

The idea behind Vogiatzoglou Systems SA and EL D Mouzakis 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.