Correlation Between Autohellas and Lavipharm

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

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

Diversification Opportunities for Autohellas and Lavipharm

0.0

Correlation Coefficient

Autohellas  Lavipharm

Pay attention - limited upside

The 3 months correlation between Autohellas and Lavipharm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Autohellas SA and Lavipharm SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lavipharm SA and Autohellas 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 Autohellas SA are associated (or correlated) with Lavipharm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lavipharm SA has no effect on the direction of Autohellas i.e., Autohellas and Lavipharm go up and down completely randomly.

Pair Corralation between Autohellas and Lavipharm

If you would invest (100.00) in Lavipharm SA on April 23, 2025 and sell it today you would earn a total of  100.00  from holding Lavipharm SA or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Autohellas SA  vs.  Lavipharm SA

Autohellas SA

Risk-Adjusted Performance

Very Weak

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

Lavipharm SA

Risk-Adjusted Performance

OK

Over the last 90 days Lavipharm SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Lavipharm 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 Autohellas and Lavipharm

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

The idea behind Autohellas SA and Lavipharm 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.

Check out your portfolio center.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.