Correlation Between Optima Bank and E Pairis
Can any of the company-specific risk be diversified away by investing in both Optima Bank and E Pairis 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 E Pairis 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 E Pairis SA, you can compare the effects of market volatilities on Optima Bank and E Pairis 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 E Pairis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optima Bank and E Pairis.
Diversification Opportunities for Optima Bank and E Pairis
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Optima and PAIR is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Optima bank SA and E Pairis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Pairis 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 E Pairis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Pairis SA has no effect on the direction of Optima Bank i.e., Optima Bank and E Pairis go up and down completely randomly.
Pair Corralation between Optima Bank and E Pairis
Assuming the 90 days trading horizon Optima Bank is expected to generate 1.66 times less return on investment than E Pairis. But when comparing it to its historical volatility, Optima bank SA is 4.63 times less risky than E Pairis. It trades about 0.24 of its potential returns per unit of risk. E Pairis SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 100.00 in E Pairis SA on November 5, 2024 and sell it today you would earn a total of 6.00 from holding E Pairis SA or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Optima bank SA vs. E Pairis SA
Performance |
| Timeline |
| Optima bank SA |
| E Pairis SA |
Optima Bank and E Pairis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optima Bank and E Pairis
The main advantage of trading using opposite Optima Bank and E Pairis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optima Bank position performs unexpectedly, E Pairis 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 E Pairis will offset losses from the drop in E Pairis' long position.| Optima Bank vs. Elvalhalcor Hellenic Copper | Optima Bank vs. Elton International Trading | Optima Bank vs. Aegean Airlines SA | Optima Bank vs. Interlife General Insurance |
| E Pairis vs. Intertech SA Inter | E Pairis vs. Lampsa Hellenic Hotels | E Pairis vs. Performance Technologies SA | E Pairis vs. Hellenic Telecommunications Organization |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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