Correlation Between Autohellas and Public Power

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

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

Diversification Opportunities for Autohellas and Public Power

-0.28

Correlation Coefficient

Autohellas  Public Power

Very good diversification

The 3 months correlation between Autohellas and Public is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Autohellas SA and Public Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Power 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 Public Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Power has no effect on the direction of Autohellas i.e., Autohellas and Public Power go up and down completely randomly.

Pair Corralation between Autohellas and Public Power

Assuming the 90 days trading horizon Autohellas SA is expected to under-perform the Public Power. In addition to that, Autohellas is 1.22 times more volatile than Public Power. It trades about -0.04 of its total potential returns per unit of risk. Public Power is currently generating about 0.1 per unit of volatility. If you would invest  1,318  in Public Power on April 25, 2025 and sell it today you would earn a total of  103.00  from holding Public Power or generate 7.81% return on investment over 90 days.

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

Autohellas SA  vs.  Public Power

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.

Public Power

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Public Power are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, Public Power may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Autohellas and Public Power

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

The idea behind Autohellas SA and Public Power 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.