Correlation Between Optima Bank and Vogiatzoglou Systems

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

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

Diversification Opportunities for Optima Bank and Vogiatzoglou Systems

0.19

Correlation Coefficient

Optima Bank  Vogiatzoglou Systems

Average diversification

The 3 months correlation between Optima and Vogiatzoglou is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Optima bank SA and Vogiatzoglou Systems SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vogiatzoglou Systems and Optima Bank 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 Optima bank SA are associated (or correlated) with Vogiatzoglou Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vogiatzoglou Systems has no effect on the direction of Optima Bank i.e., Optima Bank and Vogiatzoglou Systems go up and down completely randomly.

Pair Corralation between Optima Bank and Vogiatzoglou Systems

Assuming the 90 days trading horizon Optima bank SA is expected to generate 1.36 times more return on investment than Vogiatzoglou Systems. However, Optima Bank is 1.36 times more volatile than Vogiatzoglou Systems SA. It trades about 0.3 of its potential returns per unit of risk. Vogiatzoglou Systems SA is currently generating about 0.09 per unit of risk. If you would invest  476.00  in Optima bank SA on April 25, 2025 and sell it today you would earn a total of  244.00  from holding Optima bank SA or generate 51.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Optima bank SA  vs.  Vogiatzoglou Systems SA

Optima bank SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Optima bank SA are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Optima Bank sustained solid returns over the last few months and may actually be approaching a breakup point.

Vogiatzoglou Systems

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vogiatzoglou Systems SA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Vogiatzoglou Systems may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Optima Bank and Vogiatzoglou Systems

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

The idea behind Optima bank SA and Vogiatzoglou Systems 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.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.