Correlation Between Elvalhalcor Hellenic and Prodea Real

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

Diversification Opportunities for Elvalhalcor Hellenic and Prodea Real

0.4

Correlation Coefficient

Elvalhalcor Hellenic  Prodea Real

Very weak diversification

The 3 months correlation between Elvalhalcor and Prodea is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Elvalhalcor Hellenic Copper and Prodea Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prodea Real Estate 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 Prodea Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prodea Real Estate has no effect on the direction of Elvalhalcor Hellenic i.e., Elvalhalcor Hellenic and Prodea Real go up and down completely randomly.

Pair Corralation between Elvalhalcor Hellenic and Prodea Real

Assuming the 90 days trading horizon Elvalhalcor Hellenic Copper is expected to generate 0.51 times more return on investment than Prodea Real. However, Elvalhalcor Hellenic Copper is 1.97 times less risky than Prodea Real. It trades about 0.02 of its potential returns per unit of risk. Prodea Real Estate is currently generating about 0.0 per unit of risk. If you would invest  186.00  in Elvalhalcor Hellenic Copper on September 5, 2024 and sell it today you would earn a total of  3.00  from holding Elvalhalcor Hellenic Copper or generate 1.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.88%
Values	Daily Returns

Elvalhalcor Hellenic Copper  vs.  Prodea Real Estate

Elvalhalcor Hellenic

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Elvalhalcor Hellenic Copper are ranked lower than 1 (%) 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.

Prodea Real Estate

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Elvalhalcor Hellenic and Prodea Real

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

The idea behind Elvalhalcor Hellenic Copper and Prodea Real Estate 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.