Correlation Between Hellenic Telecommunicatio and CALTAGIRONE EDITORE

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

Diversification Opportunities for Hellenic Telecommunicatio and CALTAGIRONE EDITORE

0.65

Correlation Coefficient

Hellenic Telecommunicatio  CALTAGIRONE EDITORE

Poor diversification

The 3 months correlation between Hellenic and CALTAGIRONE is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hellenic Telecommunications Or and CALTAGIRONE EDITORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CALTAGIRONE EDITORE 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 CALTAGIRONE EDITORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CALTAGIRONE EDITORE has no effect on the direction of Hellenic Telecommunicatio i.e., Hellenic Telecommunicatio and CALTAGIRONE EDITORE go up and down completely randomly.

Pair Corralation between Hellenic Telecommunicatio and CALTAGIRONE EDITORE

Assuming the 90 days trading horizon Hellenic Telecommunications Organization is expected to generate 0.62 times more return on investment than CALTAGIRONE EDITORE. However, Hellenic Telecommunications Organization is 1.61 times less risky than CALTAGIRONE EDITORE. It trades about 0.08 of its potential returns per unit of risk. CALTAGIRONE EDITORE is currently generating about 0.01 per unit of risk. If you would invest  1,504  in Hellenic Telecommunications Organization on March 24, 2025 and sell it today you would earn a total of  98.00  from holding Hellenic Telecommunications Organization or generate 6.52% return on investment over 90 days.

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

Hellenic Telecommunications Or  vs.  CALTAGIRONE EDITORE

Hellenic Telecommunicatio

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hellenic Telecommunications Organization are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical and fundamental indicators, Hellenic Telecommunicatio may actually be approaching a critical reversion point that can send shares even higher in July 2025.

CALTAGIRONE EDITORE

Risk-Adjusted Performance

Very Weak

Over the last 90 days CALTAGIRONE EDITORE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CALTAGIRONE EDITORE is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Hellenic Telecommunicatio and CALTAGIRONE EDITORE

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

The idea behind Hellenic Telecommunications Organization and CALTAGIRONE EDITORE 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.