Correlation Between CPI Computer and Autohellas

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

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

Diversification Opportunities for CPI Computer and Autohellas

-0.22

Correlation Coefficient

CPI Computer  Autohellas

Very good diversification

The 3 months correlation between CPI and Autohellas is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding CPI Computer Peripherals and Autohellas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohellas SA and CPI Computer 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 CPI Computer Peripherals are associated (or correlated) with Autohellas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autohellas SA has no effect on the direction of CPI Computer i.e., CPI Computer and Autohellas go up and down completely randomly.

Pair Corralation between CPI Computer and Autohellas

Assuming the 90 days trading horizon CPI Computer Peripherals is expected to generate 2.09 times more return on investment than Autohellas. However, CPI Computer is 2.09 times more volatile than Autohellas SA. It trades about 0.06 of its potential returns per unit of risk. Autohellas SA is currently generating about -0.01 per unit of risk. If you would invest  55.00  in CPI Computer Peripherals on April 22, 2025 and sell it today you would earn a total of  6.00  from holding CPI Computer Peripherals or generate 10.91% return on investment over 90 days.

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

CPI Computer Peripherals  vs.  Autohellas SA

CPI Computer Peripherals

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CPI Computer Peripherals are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating forward indicators, CPI Computer unveiled solid returns over the last few months and may actually be approaching a breakup point.

Autohellas SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Autohellas SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Autohellas is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with CPI Computer and Autohellas

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

The idea behind CPI Computer Peripherals and Autohellas 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.