Correlation Between Optima Bank and Marfin Investment
Can any of the company-specific risk be diversified away by investing in both Optima Bank and Marfin Investment 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 Marfin Investment 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 Marfin Investment Group, you can compare the effects of market volatilities on Optima Bank and Marfin Investment 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 Marfin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optima Bank and Marfin Investment.
Diversification Opportunities for Optima Bank and Marfin Investment
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Optima and Marfin is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Optima bank SA and Marfin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marfin Investment 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 Marfin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marfin Investment has no effect on the direction of Optima Bank i.e., Optima Bank and Marfin Investment go up and down completely randomly.
Pair Corralation between Optima Bank and Marfin Investment
Assuming the 90 days trading horizon Optima bank SA is expected to generate 0.37 times more return on investment than Marfin Investment. However, Optima bank SA is 2.7 times less risky than Marfin Investment. It trades about 0.03 of its potential returns per unit of risk. Marfin Investment Group is currently generating about -0.1 per unit of risk. If you would invest 1,262 in Optima bank SA on August 30, 2024 and sell it today you would earn a total of 8.00 from holding Optima bank SA or generate 0.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Optima bank SA vs. Marfin Investment Group
Performance |
| Timeline |
| Optima bank SA |
| Marfin Investment |
Optima Bank and Marfin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optima Bank and Marfin Investment
The main advantage of trading using opposite Optima Bank and Marfin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optima Bank position performs unexpectedly, Marfin Investment 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 Marfin Investment will offset losses from the drop in Marfin Investment's 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 |
| Marfin Investment vs. National Bank of | Marfin Investment vs. EL D Mouzakis | Marfin Investment vs. Lampsa Hellenic Hotels | Marfin Investment vs. Eurobank Ergasias Services |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |