Correlation Between Hellenic Telecommunicatio and KonaTel

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

Diversification Opportunities for Hellenic Telecommunicatio and KonaTel

0.74

Correlation Coefficient

Hellenic Telecommunicatio  KonaTel

Poor diversification

The 3 months correlation between Hellenic and KonaTel is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Hellenic Telecommunications Or and KonaTel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KonaTel 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 KonaTel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KonaTel has no effect on the direction of Hellenic Telecommunicatio i.e., Hellenic Telecommunicatio and KonaTel go up and down completely randomly.

Pair Corralation between Hellenic Telecommunicatio and KonaTel

Assuming the 90 days horizon Hellenic Telecommunications Org is expected to generate 0.15 times more return on investment than KonaTel. However, Hellenic Telecommunications Org is 6.81 times less risky than KonaTel. It trades about -0.09 of its potential returns per unit of risk. KonaTel is currently generating about -0.02 per unit of risk. If you would invest  795.00  in Hellenic Telecommunications Org on September 14, 2024 and sell it today you would lose (35.00) from holding Hellenic Telecommunications Org or give up 4.4% of portfolio value over 90 days.

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

Hellenic Telecommunications Or  vs.  KonaTel

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.

KonaTel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KonaTel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, KonaTel is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Hellenic Telecommunicatio and KonaTel

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

The idea behind Hellenic Telecommunications Org and KonaTel 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.