Correlation Between Vogiatzoglou Systems and Autohellas

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

Diversification Opportunities for Vogiatzoglou Systems and Autohellas

0.26

Correlation Coefficient

Vogiatzoglou Systems  Autohellas

Modest diversification

The 3 months correlation between Vogiatzoglou and Autohellas is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Vogiatzoglou Systems SA and Autohellas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohellas SA 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 Autohellas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autohellas SA has no effect on the direction of Vogiatzoglou Systems i.e., Vogiatzoglou Systems and Autohellas go up and down completely randomly.

Pair Corralation between Vogiatzoglou Systems and Autohellas

Assuming the 90 days trading horizon Vogiatzoglou Systems SA is expected to generate 1.49 times more return on investment than Autohellas. However, Vogiatzoglou Systems is 1.49 times more volatile than Autohellas SA. It trades about 0.06 of its potential returns per unit of risk. Autohellas SA is currently generating about 0.05 per unit of risk. If you would invest  220.00  in Vogiatzoglou Systems SA on October 25, 2024 and sell it today you would earn a total of  14.00  from holding Vogiatzoglou Systems SA or generate 6.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.31%
Values	Daily Returns

Vogiatzoglou Systems SA  vs.  Autohellas SA

Vogiatzoglou Systems

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Vogiatzoglou Systems SA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Vogiatzoglou Systems may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Autohellas SA

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Autohellas SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Autohellas is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Vogiatzoglou Systems and Autohellas

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

The idea behind Vogiatzoglou Systems SA and Autohellas 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 CEOs Directory module to screen CEOs from public companies around the world.