Correlation Between Optima Bank and Daios Plastics
Can any of the company-specific risk be diversified away by investing in both Optima Bank and Daios Plastics 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 Daios Plastics 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 Daios Plastics SA, you can compare the effects of market volatilities on Optima Bank and Daios Plastics 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 Daios Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optima Bank and Daios Plastics.
Diversification Opportunities for Optima Bank and Daios Plastics
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Optima and Daios is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Optima bank SA and Daios Plastics SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daios Plastics SA 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 Daios Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daios Plastics SA has no effect on the direction of Optima Bank i.e., Optima Bank and Daios Plastics go up and down completely randomly.
Pair Corralation between Optima Bank and Daios Plastics
Assuming the 90 days trading horizon Optima Bank is expected to generate 22.89 times less return on investment than Daios Plastics. But when comparing it to its historical volatility, Optima bank SA is 5.22 times less risky than Daios Plastics. It trades about 0.02 of its potential returns per unit of risk. Daios Plastics SA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 326.00 in Daios Plastics SA on August 28, 2024 and sell it today you would earn a total of 34.00 from holding Daios Plastics SA or generate 10.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Optima bank SA vs. Daios Plastics SA
Performance |
| Timeline |
| Optima bank SA |
| Daios Plastics SA |
Optima Bank and Daios Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optima Bank and Daios Plastics
The main advantage of trading using opposite Optima Bank and Daios Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optima Bank position performs unexpectedly, Daios Plastics 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 Daios Plastics will offset losses from the drop in Daios Plastics' long position.| Optima Bank vs. Coca Cola HBC AG | Optima Bank vs. Hellenic Telecommunications Organization | Optima Bank vs. Greek Organization of | Optima Bank vs. Eurobank Ergasias Services |
| Daios Plastics vs. Ktima Kostas Lazaridis | Daios Plastics vs. Centric Holdings SA | Daios Plastics vs. Trastor Real Estate | Daios Plastics vs. As Commercial Industrial |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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