Correlation Between Greek Organization and Public Power

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

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

Diversification Opportunities for Greek Organization and Public Power

-0.14

Correlation Coefficient

Greek Organization  Public Power

Good diversification

The 3 months correlation between Greek and Public is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Greek Organization of and Public Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Power and Greek Organization 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 Greek Organization of are associated (or correlated) with Public Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Power has no effect on the direction of Greek Organization i.e., Greek Organization and Public Power go up and down completely randomly.

Pair Corralation between Greek Organization and Public Power

Assuming the 90 days trading horizon Greek Organization is expected to generate 1.66 times less return on investment than Public Power. But when comparing it to its historical volatility, Greek Organization of is 1.42 times less risky than Public Power. It trades about 0.06 of its potential returns per unit of risk. Public Power is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  645.00  in Public Power on September 5, 2024 and sell it today you would earn a total of  518.00  from holding Public Power or generate 80.31% return on investment over 90 days.

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

Greek Organization of  vs.  Public Power

Greek Organization

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Greek Organization of has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Public Power

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Public Power has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Public Power 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 Greek Organization and Public Power

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

The idea behind Greek Organization of and Public Power 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.