Correlation Between Hellenic Telecommunicatio and Daios Plastics

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

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

Diversification Opportunities for Hellenic Telecommunicatio and Daios Plastics

-0.23

Correlation Coefficient

Hellenic Telecommunicatio  Daios Plastics

Very good diversification

The 3 months correlation between Hellenic and Daios is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hellenic Telecommunications Or and Daios Plastics SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daios Plastics SA and Hellenic Telecommunicatio 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 Hellenic Telecommunications Organization are associated (or correlated) with Daios Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daios Plastics SA has no effect on the direction of Hellenic Telecommunicatio i.e., Hellenic Telecommunicatio and Daios Plastics go up and down completely randomly.

Pair Corralation between Hellenic Telecommunicatio and Daios Plastics

Assuming the 90 days trading horizon Hellenic Telecommunications Organization is expected to under-perform the Daios Plastics. But the stock apears to be less risky and, when comparing its historical volatility, Hellenic Telecommunications Organization is 2.83 times less risky than Daios Plastics. The stock trades about -0.04 of its potential returns per unit of risk. The Daios Plastics SA is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  362.00  in Daios Plastics SA on April 22, 2025 and sell it today you would earn a total of  158.00  from holding Daios Plastics SA or generate 43.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Hellenic Telecommunications Or  vs.  Daios Plastics SA

Hellenic Telecommunicatio

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hellenic Telecommunications Organization has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Hellenic Telecommunicatio is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Daios Plastics SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Daios Plastics SA are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Daios Plastics sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hellenic Telecommunicatio and Daios Plastics

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

The idea behind Hellenic Telecommunications Organization and Daios Plastics 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.