Correlation Between Technical Olympic and Athens General
Can any of the company-specific risk be diversified away by investing in both Technical Olympic and Athens General 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 Technical Olympic and Athens General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Technical Olympic SA and Athens General Composite, you can compare the effects of market volatilities on Technical Olympic and Athens General 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 Technical Olympic with a short position of Athens General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Technical Olympic and Athens General.
Diversification Opportunities for Technical Olympic and Athens General
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Technical and Athens is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Technical Olympic SA and Athens General Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athens General Composite and Technical Olympic 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 Technical Olympic SA are associated (or correlated) with Athens General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athens General Composite has no effect on the direction of Technical Olympic i.e., Technical Olympic and Athens General go up and down completely randomly.
Pair Corralation between Technical Olympic and Athens General
Assuming the 90 days trading horizon Technical Olympic SA is expected to under-perform the Athens General. But the stock apears to be less risky and, when comparing its historical volatility, Technical Olympic SA is 1.27 times less risky than Athens General. The stock trades about -0.26 of its potential returns per unit of risk. The Athens General Composite is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 174,667 in Athens General Composite on January 24, 2025 and sell it today you would lose (4,220) from holding Athens General Composite or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Technical Olympic SA vs. Athens General Composite
Performance |
| Timeline |
Technical Olympic and Athens General Volatility Contrast
Predicted Return Density |
| Returns |
Technical Olympic SA
Pair trading matchups for Technical Olympic
Athens General Composite
Pair trading matchups for Athens General
Pair Trading with Technical Olympic and Athens General
The main advantage of trading using opposite Technical Olympic and Athens General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Technical Olympic position performs unexpectedly, Athens General 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 Athens General will offset losses from the drop in Athens General's long position.| Technical Olympic vs. Profile Systems Software | Technical Olympic vs. Karelia Tobacco | Technical Olympic vs. Logismos Information Systems | Technical Olympic vs. Attica Bank SA |
| Athens General vs. Bank of Greece | Athens General vs. Sidma SA Steel | Athens General vs. Eurobank Ergasias Services | Athens General vs. Intracom Constructions Societe |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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