Correlation Between Profile Systems and Marfin Investment
Can any of the company-specific risk be diversified away by investing in both Profile Systems 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 Profile Systems and Marfin Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Profile Systems Software and Marfin Investment Group, you can compare the effects of market volatilities on Profile Systems 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 Profile Systems with a short position of Marfin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Profile Systems and Marfin Investment.
Diversification Opportunities for Profile Systems and Marfin Investment
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Profile and Marfin is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Profile Systems Software and Marfin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marfin Investment and Profile Systems 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 Profile Systems Software 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 Profile Systems i.e., Profile Systems and Marfin Investment go up and down completely randomly.
Pair Corralation between Profile Systems and Marfin Investment
Assuming the 90 days trading horizon Profile Systems Software is expected to generate 0.47 times more return on investment than Marfin Investment. However, Profile Systems Software is 2.15 times less risky than Marfin Investment. It trades about 0.34 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 554.00 in Profile Systems Software on April 24, 2025 and sell it today you would earn a total of 204.00 from holding Profile Systems Software or generate 36.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Profile Systems Software vs. Marfin Investment Group
Performance |
Timeline |
Profile Systems Software |
Marfin Investment |
Profile Systems and Marfin Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Profile Systems and Marfin Investment
The main advantage of trading using opposite Profile Systems and Marfin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Profile Systems 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.Profile Systems vs. Mytilineos SA | Profile Systems vs. Public Power | Profile Systems vs. Autohellas SA | Profile Systems vs. Quest Holdings SA |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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