Correlation Between Fourlis Holdings and Greek Organization

Can any of the company-specific risk be diversified away by investing in both Fourlis Holdings and Greek Organization 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 Fourlis Holdings and Greek Organization into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fourlis Holdings SA and Greek Organization of, you can compare the effects of market volatilities on Fourlis Holdings and Greek Organization 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 Fourlis Holdings with a short position of Greek Organization. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fourlis Holdings and Greek Organization.

Diversification Opportunities for Fourlis Holdings and Greek Organization

0.04

Correlation Coefficient

Fourlis Holdings  Greek Organization

Significant diversification

The 3 months correlation between Fourlis and Greek is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Fourlis Holdings SA and Greek Organization of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greek Organization and Fourlis Holdings 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 Fourlis Holdings SA are associated (or correlated) with Greek Organization. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greek Organization has no effect on the direction of Fourlis Holdings i.e., Fourlis Holdings and Greek Organization go up and down completely randomly.

Pair Corralation between Fourlis Holdings and Greek Organization

Assuming the 90 days trading horizon Fourlis Holdings is expected to generate 5.62 times less return on investment than Greek Organization. In addition to that, Fourlis Holdings is 1.35 times more volatile than Greek Organization of. It trades about 0.03 of its total potential returns per unit of risk. Greek Organization of is currently generating about 0.22 per unit of volatility. If you would invest  1,509  in Greek Organization of on September 15, 2024 and sell it today you would earn a total of  91.00  from holding Greek Organization of or generate 6.03% return on investment over 90 days.

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

Fourlis Holdings SA  vs.  Greek Organization of

Fourlis Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

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

Greek Organization

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Greek Organization of are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Greek Organization is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Fourlis Holdings and Greek Organization

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

The idea behind Fourlis Holdings SA and Greek Organization of 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.