Correlation Between GEK TERNA and Mytilineos

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

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

Diversification Opportunities for GEK TERNA and Mytilineos

0.8

Correlation Coefficient

GEK TERNA  Mytilineos

Very poor diversification

The 3 months correlation between GEK and Mytilineos is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding GEK TERNA Holdings and Mytilineos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mytilineos SA and GEK TERNA 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 GEK TERNA Holdings are associated (or correlated) with Mytilineos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mytilineos SA has no effect on the direction of GEK TERNA i.e., GEK TERNA and Mytilineos go up and down completely randomly.

Pair Corralation between GEK TERNA and Mytilineos

Assuming the 90 days trading horizon GEK TERNA Holdings is expected to generate 0.69 times more return on investment than Mytilineos. However, GEK TERNA Holdings is 1.44 times less risky than Mytilineos. It trades about 0.22 of its potential returns per unit of risk. Mytilineos SA is currently generating about 0.09 per unit of risk. If you would invest  1,855  in GEK TERNA Holdings on April 22, 2025 and sell it today you would earn a total of  297.00  from holding GEK TERNA Holdings or generate 16.01% return on investment over 90 days.

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

GEK TERNA Holdings  vs.  Mytilineos SA

GEK TERNA Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GEK TERNA Holdings are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, GEK TERNA displayed solid returns over the last few months and may actually be approaching a breakup point.

Mytilineos SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mytilineos SA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Mytilineos may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with GEK TERNA and Mytilineos

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

The idea behind GEK TERNA Holdings and Mytilineos 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.