Correlation Between ASSOC BR and Hellenic Telecommunicatio

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

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

Diversification Opportunities for ASSOC BR and Hellenic Telecommunicatio

-0.08

Correlation Coefficient

ASSOC BR  Hellenic Telecommunicatio

Good diversification

The 3 months correlation between ASSOC and Hellenic is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding ASSOC BR FOODS and Hellenic Telecommunications Or in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hellenic Telecommunicatio and ASSOC BR 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 ASSOC BR FOODS are associated (or correlated) with Hellenic Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hellenic Telecommunicatio has no effect on the direction of ASSOC BR i.e., ASSOC BR and Hellenic Telecommunicatio go up and down completely randomly.

Pair Corralation between ASSOC BR and Hellenic Telecommunicatio

Assuming the 90 days trading horizon ASSOC BR FOODS is expected to under-perform the Hellenic Telecommunicatio. In addition to that, ASSOC BR is 1.69 times more volatile than Hellenic Telecommunications Organization. It trades about -0.01 of its total potential returns per unit of risk. Hellenic Telecommunications Organization is currently generating about 0.07 per unit of volatility. If you would invest  1,483  in Hellenic Telecommunications Organization on April 20, 2025 and sell it today you would earn a total of  61.00  from holding Hellenic Telecommunications Organization or generate 4.11% return on investment over 90 days.

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

ASSOC BR FOODS  vs.  Hellenic Telecommunications Or

ASSOC BR FOODS

Risk-Adjusted Performance

Very Weak

Over the last 90 days ASSOC BR FOODS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ASSOC BR is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Hellenic Telecommunicatio

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hellenic Telecommunications Organization are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Hellenic Telecommunicatio 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 ASSOC BR and Hellenic Telecommunicatio

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

The idea behind ASSOC BR FOODS and Hellenic Telecommunications Organization 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 Global Correlations module to find global opportunities by holding instruments from different markets.