Correlation Between Technical Olympic and Bank of Greece
Can any of the company-specific risk be diversified away by investing in both Technical Olympic 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 Technical Olympic 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 Technical Olympic SA and Bank of Greece, you can compare the effects of market volatilities on Technical Olympic 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 Technical Olympic with a short position of Bank of Greece. Check out your portfolio center. Please also check ongoing floating volatility patterns of Technical Olympic and Bank of Greece.
Diversification Opportunities for Technical Olympic and Bank of Greece
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Technical and Bank is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Technical Olympic 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 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 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 Technical Olympic i.e., Technical Olympic and Bank of Greece go up and down completely randomly.
Pair Corralation between Technical Olympic and Bank of Greece
Assuming the 90 days trading horizon Technical Olympic SA is expected to generate 1.5 times more return on investment than Bank of Greece. However, Technical Olympic is 1.5 times more volatile than Bank of Greece. It trades about 0.39 of its potential returns per unit of risk. Bank of Greece is currently generating about -0.27 per unit of risk. If you would invest 234.00 in Technical Olympic SA on October 24, 2024 and sell it today you would earn a total of 21.00 from holding Technical Olympic SA or generate 8.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Technical Olympic SA vs. Bank of Greece
Performance |
| Timeline |
| Technical Olympic |
| Bank of Greece |
Technical Olympic and Bank of Greece Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Technical Olympic and Bank of Greece
The main advantage of trading using opposite Technical Olympic and Bank of Greece positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Technical Olympic 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.| Technical Olympic vs. National Bank of | Technical Olympic vs. CPI Computer Peripherals | Technical Olympic vs. Eurobank Ergasias Services | Technical Olympic vs. Hellenic Telecommunications Organization |
| Bank of Greece vs. CPI Computer Peripherals | Bank of Greece vs. Hellenic Telecommunications Organization | Bank of Greece vs. Technical Olympic SA | Bank of Greece vs. Elvalhalcor Hellenic Copper |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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