Correlation Between N Leventeris and Gr Sarantis

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

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

Diversification Opportunities for N Leventeris and Gr Sarantis

-0.35

Correlation Coefficient

N Leventeris  Gr Sarantis

Very good diversification

The 3 months correlation between LEBEP and SAR is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding N Leventeris SA and Gr Sarantis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gr Sarantis SA and N Leventeris 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 N Leventeris SA are associated (or correlated) with Gr Sarantis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gr Sarantis SA has no effect on the direction of N Leventeris i.e., N Leventeris and Gr Sarantis go up and down completely randomly.

Pair Corralation between N Leventeris and Gr Sarantis

Assuming the 90 days trading horizon N Leventeris SA is expected to under-perform the Gr Sarantis. In addition to that, N Leventeris is 1.86 times more volatile than Gr Sarantis SA. It trades about 0.0 of its total potential returns per unit of risk. Gr Sarantis SA is currently generating about 0.09 per unit of volatility. If you would invest  1,244  in Gr Sarantis SA on April 22, 2025 and sell it today you would earn a total of  126.00  from holding Gr Sarantis SA or generate 10.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

N Leventeris SA  vs.  Gr Sarantis SA

N Leventeris SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days N Leventeris SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, N Leventeris is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Gr Sarantis SA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Gr Sarantis SA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Gr Sarantis may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with N Leventeris and Gr Sarantis

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

The idea behind N Leventeris SA and Gr Sarantis 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.