Correlation Between Hellenic Telecommunicatio and Advanced Info

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

By analyzing existing cross correlation between Hellenic Telecommunications Org and Advanced Info Service, you can compare the effects of market volatilities on Hellenic Telecommunicatio and Advanced Info 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 Hellenic Telecommunicatio with a short position of Advanced Info. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hellenic Telecommunicatio and Advanced Info.

Diversification Opportunities for Hellenic Telecommunicatio and Advanced Info

-0.29

Correlation Coefficient

Hellenic Telecommunicatio  Advanced Info

Very good diversification

The 3 months correlation between Hellenic and Advanced is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hellenic Telecommunications Or and Advanced Info Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Info Service and Hellenic Telecommunicatio 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 Hellenic Telecommunications Org are associated (or correlated) with Advanced Info. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Info Service has no effect on the direction of Hellenic Telecommunicatio i.e., Hellenic Telecommunicatio and Advanced Info go up and down completely randomly.

Pair Corralation between Hellenic Telecommunicatio and Advanced Info

Assuming the 90 days horizon Hellenic Telecommunications Org is expected to under-perform the Advanced Info. But the pink sheet apears to be less risky and, when comparing its historical volatility, Hellenic Telecommunications Org is 2.26 times less risky than Advanced Info. The pink sheet trades about -0.05 of its potential returns per unit of risk. The Advanced Info Service is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  785.00  in Advanced Info Service on September 14, 2024 and sell it today you would earn a total of  174.00  from holding Advanced Info Service or generate 22.17% return on investment over 90 days.

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

Hellenic Telecommunications Or  vs.  Advanced Info Service

Hellenic Telecommunicatio

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hellenic Telecommunications Org has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Hellenic Telecommunicatio is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Advanced Info Service

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Advanced Info Service are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile technical and fundamental indicators, Advanced Info showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hellenic Telecommunicatio and Advanced Info

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

The idea behind Hellenic Telecommunications Org and Advanced Info Service 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.

Check out your portfolio center.

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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.