Correlation Between Bank of Greece and Alpha Trust
Can any of the company-specific risk be diversified away by investing in both Bank of Greece and Alpha Trust 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 Bank of Greece and Alpha Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of Greece and Alpha Trust Mutual, you can compare the effects of market volatilities on Bank of Greece and Alpha Trust 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 Bank of Greece with a short position of Alpha Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Greece and Alpha Trust.
Diversification Opportunities for Bank of Greece and Alpha Trust
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Alpha is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Greece and Alpha Trust Mutual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Trust Mutual and Bank of Greece 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 Bank of Greece are associated (or correlated) with Alpha Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Trust Mutual has no effect on the direction of Bank of Greece i.e., Bank of Greece and Alpha Trust go up and down completely randomly.
Pair Corralation between Bank of Greece and Alpha Trust
Assuming the 90 days trading horizon Bank of Greece is expected to generate 1.4 times less return on investment than Alpha Trust. In addition to that, Bank of Greece is 1.16 times more volatile than Alpha Trust Mutual. It trades about 0.09 of its total potential returns per unit of risk. Alpha Trust Mutual is currently generating about 0.14 per unit of volatility. If you would invest 816.00 in Alpha Trust Mutual on April 23, 2025 and sell it today you would earn a total of 60.00 from holding Alpha Trust Mutual or generate 7.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.41% |
Values | Daily Returns |
Bank of Greece vs. Alpha Trust Mutual
Performance |
Timeline |
Bank of Greece |
Alpha Trust Mutual |
Bank of Greece and Alpha Trust Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of Greece and Alpha Trust
The main advantage of trading using opposite Bank of Greece and Alpha Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Greece position performs unexpectedly, Alpha Trust 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 Alpha Trust will offset losses from the drop in Alpha Trust's long position.Bank of Greece vs. Foodlink AE | Bank of Greece vs. Attica Bank SA | Bank of Greece vs. Elvalhalcor Hellenic Copper | Bank of Greece vs. Thrace Plastics Holding |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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