Correlation Between AIR PRODCHEMICALS and Hellenic Telecommunicatio

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

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

Diversification Opportunities for AIR PRODCHEMICALS and Hellenic Telecommunicatio

-0.24

Correlation Coefficient

AIR PRODCHEMICALS  Hellenic Telecommunicatio

Very good diversification

The 3 months correlation between AIR and Hellenic is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding AIR PRODCHEMICALS and Hellenic Telecommunications Or in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hellenic Telecommunicatio and AIR PRODCHEMICALS 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 AIR PRODCHEMICALS 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 AIR PRODCHEMICALS i.e., AIR PRODCHEMICALS and Hellenic Telecommunicatio go up and down completely randomly.

Pair Corralation between AIR PRODCHEMICALS and Hellenic Telecommunicatio

Assuming the 90 days trading horizon AIR PRODCHEMICALS is expected to under-perform the Hellenic Telecommunicatio. In addition to that, AIR PRODCHEMICALS is 2.01 times more volatile than Hellenic Telecommunications Organization. It trades about -0.06 of its total potential returns per unit of risk. Hellenic Telecommunications Organization is currently generating about 0.08 per unit of volatility. If you would invest  1,504  in Hellenic Telecommunications Organization on March 23, 2025 and sell it today you would earn a total of  98.00  from holding Hellenic Telecommunications Organization or generate 6.52% return on investment over 90 days.

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

AIR PRODCHEMICALS  vs.  Hellenic Telecommunications Or

AIR PRODCHEMICALS

Risk-Adjusted Performance

Very Weak

Over the last 90 days AIR PRODCHEMICALS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

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 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical and fundamental indicators, Hellenic Telecommunicatio may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Pair Trading with AIR PRODCHEMICALS and Hellenic Telecommunicatio

The main advantage of trading using opposite AIR PRODCHEMICALS and Hellenic Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIR PRODCHEMICALS 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 AIR PRODCHEMICALS 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.

Check out your portfolio center.

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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.