Correlation Between Ktima Kostas and Wool Industry

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

By analyzing existing cross correlation between Ktima Kostas Lazaridis and Wool Industry Tria, you can compare the effects of market volatilities on Ktima Kostas and Wool Industry 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 Ktima Kostas with a short position of Wool Industry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ktima Kostas and Wool Industry.

Diversification Opportunities for Ktima Kostas and Wool Industry

0.66

Correlation Coefficient

Ktima Kostas  Wool Industry

Poor diversification

The 3 months correlation between Ktima and Wool is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ktima Kostas Lazaridis and Wool Industry Tria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wool Industry Tria and Ktima Kostas 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 Ktima Kostas Lazaridis are associated (or correlated) with Wool Industry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wool Industry Tria has no effect on the direction of Ktima Kostas i.e., Ktima Kostas and Wool Industry go up and down completely randomly.

Pair Corralation between Ktima Kostas and Wool Industry

Assuming the 90 days trading horizon Ktima Kostas is expected to generate 5.11 times less return on investment than Wool Industry. But when comparing it to its historical volatility, Ktima Kostas Lazaridis is 3.09 times less risky than Wool Industry. It trades about 0.09 of its potential returns per unit of risk. Wool Industry Tria is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  500.00  in Wool Industry Tria on April 24, 2025 and sell it today you would earn a total of  280.00  from holding Wool Industry Tria or generate 56.0% return on investment over 90 days.

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

Ktima Kostas Lazaridis  vs.  Wool Industry Tria

Ktima Kostas Lazaridis

Risk-Adjusted Performance

OK

Over the last 90 days Ktima Kostas Lazaridis has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak basic indicators, Ktima Kostas may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Wool Industry Tria

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Wool Industry Tria are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Wool Industry unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ktima Kostas and Wool Industry

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

The idea behind Ktima Kostas Lazaridis and Wool Industry Tria 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.