Correlation Between Athens General and Attica Publications
Can any of the company-specific risk be diversified away by investing in both Athens General and Attica Publications 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 Attica Publications 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 Attica Publications SA, you can compare the effects of market volatilities on Athens General and Attica Publications 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 Attica Publications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Athens General and Attica Publications.
Diversification Opportunities for Athens General and Attica Publications
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Athens and Attica is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Athens General Composite and Attica Publications SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Attica Publications 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 Attica Publications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Attica Publications has no effect on the direction of Athens General i.e., Athens General and Attica Publications go up and down completely randomly.
Pair Corralation between Athens General and Attica Publications
Assuming the 90 days trading horizon Athens General is expected to generate 4.35 times less return on investment than Attica Publications. But when comparing it to its historical volatility, Athens General Composite is 2.58 times less risky than Attica Publications. It trades about 0.13 of its potential returns per unit of risk. Attica Publications SA is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 39.00 in Attica Publications SA on September 4, 2024 and sell it today you would earn a total of 4.00 from holding Attica Publications SA or generate 10.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Athens General Composite vs. Attica Publications SA
Performance |
| Timeline |
Athens General and Attica Publications Volatility Contrast
Predicted Return Density |
| Returns |
Athens General Composite
Pair trading matchups for Athens General
Attica Publications SA
Pair trading matchups for Attica Publications
Pair Trading with Athens General and Attica Publications
The main advantage of trading using opposite Athens General and Attica Publications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Athens General position performs unexpectedly, Attica Publications 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 Attica Publications will offset losses from the drop in Attica Publications' long position.| Athens General vs. National Bank of | Athens General vs. Technical Olympic SA | Athens General vs. Profile Systems Software | Athens General vs. Bank of Greece |
| Attica Publications vs. As Commercial Industrial | Attica Publications vs. Optima bank SA | Attica Publications vs. Logismos Information Systems | Attica Publications vs. Profile Systems Software |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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