Correlation Between Elvalhalcor Hellenic and Elton International

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

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

Diversification Opportunities for Elvalhalcor Hellenic and Elton International

-0.07

Correlation Coefficient

Elvalhalcor Hellenic  Elton International

Good diversification

The 3 months correlation between Elvalhalcor and Elton is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Elvalhalcor Hellenic Copper and Elton International Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elton International and Elvalhalcor Hellenic 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 Elvalhalcor Hellenic Copper 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 Elvalhalcor Hellenic i.e., Elvalhalcor Hellenic and Elton International go up and down completely randomly.

Pair Corralation between Elvalhalcor Hellenic and Elton International

Assuming the 90 days trading horizon Elvalhalcor Hellenic is expected to generate 2.09 times less return on investment than Elton International. In addition to that, Elvalhalcor Hellenic is 1.13 times more volatile than Elton International Trading. It trades about 0.05 of its total potential returns per unit of risk. Elton International Trading is currently generating about 0.13 per unit of volatility. If you would invest  167.00  in Elton International Trading on September 15, 2024 and sell it today you would earn a total of  22.00  from holding Elton International Trading or generate 13.17% return on investment over 90 days.

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

Elvalhalcor Hellenic Copper  vs.  Elton International Trading

Elvalhalcor Hellenic

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Elvalhalcor Hellenic Copper are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Elvalhalcor Hellenic is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Elton International

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Elton International Trading are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Elton International sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Elvalhalcor Hellenic and Elton International

The main advantage of trading using opposite Elvalhalcor Hellenic and Elton International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elvalhalcor Hellenic 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 Elvalhalcor Hellenic Copper 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.