Correlation Between Elton International and Bank of Greece
Can any of the company-specific risk be diversified away by investing in both Elton International 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 Elton International 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 Elton International Trading and Bank of Greece, you can compare the effects of market volatilities on Elton International 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 Elton International with a short position of Bank of Greece. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elton International and Bank of Greece.
Diversification Opportunities for Elton International and Bank of Greece
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Elton and Bank is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Elton International Trading 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 Elton International 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 Elton International Trading 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 Elton International i.e., Elton International and Bank of Greece go up and down completely randomly.
Pair Corralation between Elton International and Bank of Greece
Assuming the 90 days trading horizon Elton International Trading is expected to generate 1.98 times more return on investment than Bank of Greece. However, Elton International is 1.98 times more volatile than Bank of Greece. It trades about 0.08 of its potential returns per unit of risk. Bank of Greece is currently generating about -0.07 per unit of risk. If you would invest 172.00 in Elton International Trading on August 31, 2024 and sell it today you would earn a total of 14.00 from holding Elton International Trading or generate 8.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elton International Trading vs. Bank of Greece
Performance |
| Timeline |
| Elton International |
| Bank of Greece |
Elton International and Bank of Greece Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elton International and Bank of Greece
The main advantage of trading using opposite Elton International and Bank of Greece positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elton International 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.| Elton International vs. Autohellas SA | Elton International vs. Admie Holding SA | Elton International vs. Hellenic Petroleum SA | Elton International vs. Jumbo SA |
| Bank of Greece vs. Eurobank Ergasias Services | Bank of Greece vs. Attica Bank SA | Bank of Greece vs. National Bank of | Bank of Greece vs. EL D Mouzakis |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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