Correlation Between Athens General and Bank of Greece
Can any of the company-specific risk be diversified away by investing in both Athens General and Bank of Greece 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 Athens General and Bank of Greece into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Athens General Composite and Bank of Greece, you can compare the effects of market volatilities on Athens General and Bank of Greece 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 Athens General with a short position of Bank of Greece. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athens General and Bank of Greece.
Diversification Opportunities for Athens General and Bank of Greece
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Athens and Bank is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Athens General Composite and Bank of Greece in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Greece and Athens General 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 Athens General Composite are associated (or correlated) with Bank of Greece. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Greece has no effect on the direction of Athens General i.e., Athens General and Bank of Greece go up and down completely randomly.
Pair Corralation between Athens General and Bank of Greece
Assuming the 90 days trading horizon Athens General Composite is expected to generate 0.84 times more return on investment than Bank of Greece. However, Athens General Composite is 1.19 times less risky than Bank of Greece. It trades about 0.12 of its potential returns per unit of risk. Bank of Greece is currently generating about 0.0 per unit of risk. If you would invest 82,284 in Athens General Composite on February 4, 2024 and sell it today you would earn a total of 62,940 from holding Athens General Composite or generate 76.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Athens General Composite vs. Bank of Greece
Performance |
Timeline |
Athens General and Bank of Greece Volatility Contrast
Predicted Return Density |
Returns |
Athens General Composite
Pair trading matchups for Athens General
Bank of Greece
Pair trading matchups for Bank of Greece
Pair Trading with Athens General and Bank of Greece
The main advantage of trading using opposite Athens General and Bank of Greece positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athens General position performs unexpectedly, Bank of Greece 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 Bank of Greece will offset losses from the drop in Bank of Greece's long position.Athens General vs. Sato office and | Athens General vs. Elvalhalcor Hellenic Copper | Athens General vs. Performance Technologies SA | Athens General vs. Intertech SA Inter |
Bank of Greece vs. Sidma SA Steel | Bank of Greece vs. Hellenic Telecommunications Organization | Bank of Greece vs. Foodlink AE | Bank of Greece vs. Optronics Technologies SA |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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