Correlation Between Hellenic Telecommunicatio and CSL

Can any of the company-specific risk be diversified away by investing in both Hellenic Telecommunicatio and CSL 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 CSL 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 CSL Limited, you can compare the effects of market volatilities on Hellenic Telecommunicatio and CSL 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 CSL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hellenic Telecommunicatio and CSL.

Diversification Opportunities for Hellenic Telecommunicatio and CSL

0.52

Correlation Coefficient

Hellenic Telecommunicatio  CSL

Very weak diversification

The 3 months correlation between Hellenic and CSL is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Hellenic Telecommunications Or and CSL Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL Limited 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 CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL Limited has no effect on the direction of Hellenic Telecommunicatio i.e., Hellenic Telecommunicatio and CSL go up and down completely randomly.

Pair Corralation between Hellenic Telecommunicatio and CSL

Assuming the 90 days trading horizon Hellenic Telecommunications Organization is expected to under-perform the CSL. But the stock apears to be less risky and, when comparing its historical volatility, Hellenic Telecommunications Organization is 1.13 times less risky than CSL. The stock trades about -0.19 of its potential returns per unit of risk. The CSL Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  13,310  in CSL Limited on April 15, 2025 and sell it today you would earn a total of  10.00  from holding CSL Limited or generate 0.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

Hellenic Telecommunications Or  vs.  CSL Limited

Hellenic Telecommunicatio

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hellenic Telecommunications Organization are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Hellenic Telecommunicatio may actually be approaching a critical reversion point that can send shares even higher in August 2025.

CSL Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days CSL Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CSL is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Hellenic Telecommunicatio and CSL

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

The idea behind Hellenic Telecommunications Organization and CSL Limited 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..