Correlation Between Optronics Technologies and Marfin Investment

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

By analyzing existing cross correlation between Optronics Technologies SA and Marfin Investment Group, you can compare the effects of market volatilities on Optronics Technologies and Marfin Investment 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 Optronics Technologies with a short position of Marfin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optronics Technologies and Marfin Investment.

Diversification Opportunities for Optronics Technologies and Marfin Investment

0.75

Correlation Coefficient

Optronics Technologies  Marfin Investment

Poor diversification

The 3 months correlation between Optronics and Marfin is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Optronics Technologies SA and Marfin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marfin Investment and Optronics Technologies 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 Optronics Technologies SA are associated (or correlated) with Marfin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marfin Investment has no effect on the direction of Optronics Technologies i.e., Optronics Technologies and Marfin Investment go up and down completely randomly.

Pair Corralation between Optronics Technologies and Marfin Investment

Assuming the 90 days trading horizon Optronics Technologies SA is expected to generate 1.1 times more return on investment than Marfin Investment. However, Optronics Technologies is 1.1 times more volatile than Marfin Investment Group. It trades about 0.36 of its potential returns per unit of risk. Marfin Investment Group is currently generating about 0.15 per unit of risk. If you would invest  138.00  in Optronics Technologies SA on April 24, 2025 and sell it today you would earn a total of  162.00  from holding Optronics Technologies SA or generate 117.39% return on investment over 90 days.

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

Optronics Technologies SA  vs.  Marfin Investment Group

Optronics Technologies

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Optronics Technologies SA are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Optronics Technologies sustained solid returns over the last few months and may actually be approaching a breakup point.

Marfin Investment

Risk-Adjusted Performance

Good

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

Pair Trading with Optronics Technologies and Marfin Investment

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

The idea behind Optronics Technologies SA and Marfin Investment Group 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.