Correlation Between Thessaloniki Port and Attica Holdings
Can any of the company-specific risk be diversified away by investing in both Thessaloniki Port and Attica Holdings 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 Thessaloniki Port and Attica Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thessaloniki Port Authority and Attica Holdings SA, you can compare the effects of market volatilities on Thessaloniki Port and Attica Holdings 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 Thessaloniki Port with a short position of Attica Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thessaloniki Port and Attica Holdings.
Diversification Opportunities for Thessaloniki Port and Attica Holdings
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Thessaloniki and Attica is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Thessaloniki Port Authority and Attica Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Attica Holdings SA and Thessaloniki Port 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 Thessaloniki Port Authority are associated (or correlated) with Attica Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Attica Holdings SA has no effect on the direction of Thessaloniki Port i.e., Thessaloniki Port and Attica Holdings go up and down completely randomly.
Pair Corralation between Thessaloniki Port and Attica Holdings
Assuming the 90 days trading horizon Thessaloniki Port is expected to generate 1.22 times less return on investment than Attica Holdings. But when comparing it to its historical volatility, Thessaloniki Port Authority is 1.35 times less risky than Attica Holdings. It trades about 0.24 of its potential returns per unit of risk. Attica Holdings SA is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 209.00 in Attica Holdings SA on September 1, 2024 and sell it today you would earn a total of 16.00 from holding Attica Holdings SA or generate 7.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thessaloniki Port Authority vs. Attica Holdings SA
Performance |
| Timeline |
| Thessaloniki Port |
| Attica Holdings SA |
Thessaloniki Port and Attica Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thessaloniki Port and Attica Holdings
The main advantage of trading using opposite Thessaloniki Port and Attica Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thessaloniki Port position performs unexpectedly, Attica Holdings 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 Holdings will offset losses from the drop in Attica Holdings' long position.| Thessaloniki Port vs. Profile Systems Software | Thessaloniki Port vs. Elton International Trading | Thessaloniki Port vs. Bank of Greece | Thessaloniki Port vs. As Commercial Industrial |
| Attica Holdings vs. Motor Oil Corinth | Attica Holdings vs. Coca Cola HBC AG | Attica Holdings vs. Mytilineos SA | Attica Holdings vs. Hellenic Exchanges |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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