Correlation Between Bank of Greece and Technical Olympic

Can any of the company-specific risk be diversified away by investing in both Bank of Greece and Technical Olympic 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 Technical Olympic 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 Technical Olympic SA, you can compare the effects of market volatilities on Bank of Greece and Technical Olympic 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 Technical Olympic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Greece and Technical Olympic.

Diversification Opportunities for Bank of Greece and Technical Olympic

0.63

Correlation Coefficient

Bank of Greece  Technical Olympic

Poor diversification

The 3 months correlation between Bank and Technical is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Greece and Technical Olympic SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technical Olympic 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 Technical Olympic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technical Olympic has no effect on the direction of Bank of Greece i.e., Bank of Greece and Technical Olympic go up and down completely randomly.

Pair Corralation between Bank of Greece and Technical Olympic

Assuming the 90 days trading horizon Bank of Greece is expected to generate 3.12 times less return on investment than Technical Olympic. But when comparing it to its historical volatility, Bank of Greece is 1.65 times less risky than Technical Olympic. It trades about 0.11 of its potential returns per unit of risk. Technical Olympic SA is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  223.00  in Technical Olympic SA on April 24, 2025 and sell it today you would earn a total of  46.00  from holding Technical Olympic SA or generate 20.63% return on investment over 90 days.

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

Bank of Greece  vs.  Technical Olympic SA

Bank of Greece

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bank of Greece are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Bank of Greece may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Technical Olympic

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Technical Olympic SA are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Technical Olympic sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bank of Greece and Technical Olympic

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

The idea behind Bank of Greece and Technical Olympic 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.