Correlation Between Lampsa Hellenic and Profile Systems

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

By analyzing existing cross correlation between Lampsa Hellenic Hotels and Profile Systems Software, you can compare the effects of market volatilities on Lampsa Hellenic and Profile Systems 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 Lampsa Hellenic with a short position of Profile Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lampsa Hellenic and Profile Systems.

Diversification Opportunities for Lampsa Hellenic and Profile Systems

0.91

Correlation Coefficient

Lampsa Hellenic  Profile Systems

Almost no diversification

The 3 months correlation between Lampsa and Profile is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Lampsa Hellenic Hotels and Profile Systems Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Profile Systems Software and Lampsa 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 Lampsa Hellenic Hotels are associated (or correlated) with Profile Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Profile Systems Software has no effect on the direction of Lampsa Hellenic i.e., Lampsa Hellenic and Profile Systems go up and down completely randomly.

Pair Corralation between Lampsa Hellenic and Profile Systems

Assuming the 90 days trading horizon Lampsa Hellenic is expected to generate 4.88 times less return on investment than Profile Systems. But when comparing it to its historical volatility, Lampsa Hellenic Hotels is 2.11 times less risky than Profile Systems. It trades about 0.16 of its potential returns per unit of risk. Profile Systems Software is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest  534.00  in Profile Systems Software on April 23, 2025 and sell it today you would earn a total of  227.00  from holding Profile Systems Software or generate 42.51% return on investment over 90 days.

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

Lampsa Hellenic Hotels  vs.  Profile Systems Software

Lampsa Hellenic Hotels

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lampsa Hellenic Hotels are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Lampsa Hellenic may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Profile Systems Software

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Profile Systems Software are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Profile Systems unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lampsa Hellenic and Profile Systems

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

The idea behind Lampsa Hellenic Hotels and Profile Systems Software 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.