Correlation Between Autohellas and Kri Kri

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

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

Diversification Opportunities for Autohellas and Kri Kri

-0.53

Correlation Coefficient

Autohellas  Kri Kri

Excellent diversification

The 3 months correlation between Autohellas and Kri is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Autohellas SA and Kri Kri Milk Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kri Kri Milk and Autohellas 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 Autohellas SA are associated (or correlated) with Kri Kri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kri Kri Milk has no effect on the direction of Autohellas i.e., Autohellas and Kri Kri go up and down completely randomly.

Pair Corralation between Autohellas and Kri Kri

Assuming the 90 days trading horizon Autohellas SA is expected to under-perform the Kri Kri. But the stock apears to be less risky and, when comparing its historical volatility, Autohellas SA is 1.61 times less risky than Kri Kri. The stock trades about -0.19 of its potential returns per unit of risk. The Kri Kri Milk Industry is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1,485  in Kri Kri Milk Industry on September 14, 2024 and sell it today you would earn a total of  20.00  from holding Kri Kri Milk Industry or generate 1.35% return on investment over 90 days.

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

Autohellas SA  vs.  Kri Kri Milk Industry

Autohellas SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Autohellas SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Kri Kri Milk

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kri Kri Milk Industry are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward indicators, Kri Kri unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Autohellas and Kri Kri

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

The idea behind Autohellas SA and Kri Kri Milk Industry 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.