Correlation Between Optima Bank and Attica Publications
Can any of the company-specific risk be diversified away by investing in both Optima Bank and Attica Publications 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 Optima Bank and Attica Publications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Optima bank SA and Attica Publications SA, you can compare the effects of market volatilities on Optima Bank and Attica Publications 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 Optima Bank with a short position of Attica Publications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optima Bank and Attica Publications.
Diversification Opportunities for Optima Bank and Attica Publications
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Optima and Attica is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Optima bank SA and Attica Publications SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Attica Publications and Optima Bank 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 Optima bank SA are associated (or correlated) with Attica Publications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Attica Publications has no effect on the direction of Optima Bank i.e., Optima Bank and Attica Publications go up and down completely randomly.
Pair Corralation between Optima Bank and Attica Publications
Assuming the 90 days trading horizon Optima Bank is expected to generate 1.05 times less return on investment than Attica Publications. But when comparing it to its historical volatility, Optima bank SA is 3.27 times less risky than Attica Publications. It trades about 0.14 of its potential returns per unit of risk. Attica Publications SA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Attica Publications SA on September 5, 2024 and sell it today you would earn a total of 15.00 from holding Attica Publications SA or generate 53.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 72.82% |
| Values | Daily Returns |
Optima bank SA vs. Attica Publications SA
Performance |
| Timeline |
| Optima bank SA |
| Attica Publications |
Optima Bank and Attica Publications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optima Bank and Attica Publications
The main advantage of trading using opposite Optima Bank and Attica Publications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optima Bank position performs unexpectedly, Attica Publications 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 Publications will offset losses from the drop in Attica Publications' long position.| Optima Bank vs. Hellenic Telecommunications Organization | Optima Bank vs. Greek Organization of | Optima Bank vs. Eurobank Ergasias Services | Optima Bank vs. National Bank of |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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