Correlation Between Bioter SA and Bank of Greece
Can any of the company-specific risk be diversified away by investing in both Bioter SA 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 Bioter SA 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 Bioter SA and Bank of Greece, you can compare the effects of market volatilities on Bioter SA 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 Bioter SA with a short position of Bank of Greece. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bioter SA and Bank of Greece.
Diversification Opportunities for Bioter SA and Bank of Greece
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bioter and Bank is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Bioter SA 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 Bioter SA 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 Bioter SA 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 Bioter SA i.e., Bioter SA and Bank of Greece go up and down completely randomly.
Pair Corralation between Bioter SA and Bank of Greece
Assuming the 90 days trading horizon Bioter SA is expected to generate 3.91 times more return on investment than Bank of Greece. However, Bioter SA is 3.91 times more volatile than Bank of Greece. It trades about 0.02 of its potential returns per unit of risk. Bank of Greece is currently generating about -0.01 per unit of risk. If you would invest 27.00 in Bioter SA on December 4, 2024 and sell it today you would lose (2.00) from holding Bioter SA or give up 7.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.01% |
| Values | Daily Returns |
Bioter SA vs. Bank of Greece
Performance |
| Timeline |
| Bioter SA |
| Bank of Greece |
Bioter SA and Bank of Greece Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bioter SA and Bank of Greece
The main advantage of trading using opposite Bioter SA and Bank of Greece positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bioter SA 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.| Bioter SA vs. Avax SA | ||
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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