Correlation Between Elvalhalcor Hellenic and General Commercial

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

By analyzing existing cross correlation between Elvalhalcor Hellenic Copper and General Commercial Industrial, you can compare the effects of market volatilities on Elvalhalcor Hellenic and General Commercial 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 Elvalhalcor Hellenic with a short position of General Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elvalhalcor Hellenic and General Commercial.

Diversification Opportunities for Elvalhalcor Hellenic and General Commercial

0.9

Correlation Coefficient

Elvalhalcor Hellenic  General Commercial

Almost no diversification

The 3 months correlation between Elvalhalcor and General is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Elvalhalcor Hellenic Copper and General Commercial Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Commercial and Elvalhalcor Hellenic 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 Elvalhalcor Hellenic Copper are associated (or correlated) with General Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Commercial has no effect on the direction of Elvalhalcor Hellenic i.e., Elvalhalcor Hellenic and General Commercial go up and down completely randomly.

Pair Corralation between Elvalhalcor Hellenic and General Commercial

Assuming the 90 days trading horizon Elvalhalcor Hellenic Copper is expected to generate 1.02 times more return on investment than General Commercial. However, Elvalhalcor Hellenic is 1.02 times more volatile than General Commercial Industrial. It trades about 0.31 of its potential returns per unit of risk. General Commercial Industrial is currently generating about 0.18 per unit of risk. If you would invest  185.00  in Elvalhalcor Hellenic Copper on April 22, 2025 and sell it today you would earn a total of  82.00  from holding Elvalhalcor Hellenic Copper or generate 44.32% return on investment over 90 days.

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

Elvalhalcor Hellenic Copper  vs.  General Commercial Industrial

Elvalhalcor Hellenic

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Elvalhalcor Hellenic Copper are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Elvalhalcor Hellenic unveiled solid returns over the last few months and may actually be approaching a breakup point.

General Commercial

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in General Commercial Industrial are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, General Commercial sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Elvalhalcor Hellenic and General Commercial

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

The idea behind Elvalhalcor Hellenic Copper and General Commercial Industrial 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.