Correlation Between Lampsa Hellenic and Gr Sarantis

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

By analyzing existing cross correlation between Lampsa Hellenic Hotels and Gr Sarantis SA, you can compare the effects of market volatilities on Lampsa Hellenic and Gr Sarantis 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 Lampsa Hellenic with a short position of Gr Sarantis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lampsa Hellenic and Gr Sarantis.

Diversification Opportunities for Lampsa Hellenic and Gr Sarantis

-0.01

Correlation Coefficient

Lampsa Hellenic  Gr Sarantis

Good diversification

The 3 months correlation between Lampsa and SAR is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Lampsa Hellenic Hotels and Gr Sarantis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gr Sarantis SA and Lampsa 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 Lampsa Hellenic Hotels are associated (or correlated) with Gr Sarantis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gr Sarantis SA has no effect on the direction of Lampsa Hellenic i.e., Lampsa Hellenic and Gr Sarantis go up and down completely randomly.

Pair Corralation between Lampsa Hellenic and Gr Sarantis

Assuming the 90 days trading horizon Lampsa Hellenic Hotels is expected to generate 0.72 times more return on investment than Gr Sarantis. However, Lampsa Hellenic Hotels is 1.38 times less risky than Gr Sarantis. It trades about 0.06 of its potential returns per unit of risk. Gr Sarantis SA is currently generating about 0.0 per unit of risk. If you would invest  3,620  in Lampsa Hellenic Hotels on September 16, 2024 and sell it today you would earn a total of  100.00  from holding Lampsa Hellenic Hotels or generate 2.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Lampsa Hellenic Hotels  vs.  Gr Sarantis SA

Lampsa Hellenic Hotels

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lampsa Hellenic Hotels are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Lampsa Hellenic is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Gr Sarantis SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gr Sarantis SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Gr Sarantis is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Lampsa Hellenic and Gr Sarantis

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

The idea behind Lampsa Hellenic Hotels and Gr Sarantis SA 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.