Correlation Between Interlife General and Attica Bank
Can any of the company-specific risk be diversified away by investing in both Interlife General and Attica Bank 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 Interlife General and Attica Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interlife General Insurance and Attica Bank SA, you can compare the effects of market volatilities on Interlife General and Attica Bank 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 Interlife General with a short position of Attica Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interlife General and Attica Bank.
Diversification Opportunities for Interlife General and Attica Bank
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Interlife and Attica is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Interlife General Insurance and Attica Bank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Attica Bank SA and Interlife 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 Interlife General Insurance are associated (or correlated) with Attica Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Attica Bank SA has no effect on the direction of Interlife General i.e., Interlife General and Attica Bank go up and down completely randomly.
Pair Corralation between Interlife General and Attica Bank
Assuming the 90 days trading horizon Interlife General Insurance is expected to generate 0.03 times more return on investment than Attica Bank. However, Interlife General Insurance is 33.35 times less risky than Attica Bank. It trades about -0.2 of its potential returns per unit of risk. Attica Bank SA is currently generating about -0.02 per unit of risk. If you would invest 493.00 in Interlife General Insurance on September 3, 2024 and sell it today you would lose (70.00) from holding Interlife General Insurance or give up 14.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.31% |
| Values | Daily Returns |
Interlife General Insurance vs. Attica Bank SA
Performance |
| Timeline |
| Interlife General |
| Attica Bank SA |
Interlife General and Attica Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interlife General and Attica Bank
The main advantage of trading using opposite Interlife General and Attica Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interlife General position performs unexpectedly, Attica Bank 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 Bank will offset losses from the drop in Attica Bank's long position.| Interlife General vs. Cenergy Holdings SA | Interlife General vs. Mytilineos SA | Interlife General vs. Motor Oil Corinth | Interlife General vs. Hellenic Petroleum SA |
| Attica Bank vs. Optima bank SA | Attica Bank vs. Technical Olympic SA | Attica Bank vs. Marfin Investment Group | Attica Bank vs. Interlife General Insurance |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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