Correlation Between As Commercial and Bank of Greece
Can any of the company-specific risk be diversified away by investing in both As Commercial 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 As Commercial 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 As Commercial Industrial and Bank of Greece, you can compare the effects of market volatilities on As Commercial 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 As Commercial with a short position of Bank of Greece. Check out your portfolio center. Please also check ongoing floating volatility patterns of As Commercial and Bank of Greece.
Diversification Opportunities for As Commercial and Bank of Greece
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ASCO and Bank is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding As Commercial Industrial 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 As Commercial 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 As Commercial Industrial 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 As Commercial i.e., As Commercial and Bank of Greece go up and down completely randomly.
Pair Corralation between As Commercial and Bank of Greece
Assuming the 90 days trading horizon As Commercial Industrial is expected to under-perform the Bank of Greece. But the stock apears to be less risky and, when comparing its historical volatility, As Commercial Industrial is 1.11 times less risky than Bank of Greece. The stock trades about -0.17 of its potential returns per unit of risk. The Bank of Greece is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,320 in Bank of Greece on August 26, 2024 and sell it today you would lose (10.00) from holding Bank of Greece or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
As Commercial Industrial vs. Bank of Greece
Performance |
| Timeline |
| As Commercial Industrial |
| Bank of Greece |
As Commercial and Bank of Greece Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with As Commercial and Bank of Greece
The main advantage of trading using opposite As Commercial and Bank of Greece positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if As Commercial 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.| As Commercial vs. Autohellas SA | As Commercial vs. BriQ Properties Real | As Commercial vs. Thrace Plastics Holding | As Commercial vs. Kri Kri Milk Industry |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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