Correlation Between Optronics Technologies and Bank of Greece
Can any of the company-specific risk be diversified away by investing in both Optronics Technologies 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 Optronics Technologies 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 Optronics Technologies SA and Bank of Greece, you can compare the effects of market volatilities on Optronics Technologies 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 Optronics Technologies with a short position of Bank of Greece. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optronics Technologies and Bank of Greece.
Diversification Opportunities for Optronics Technologies and Bank of Greece
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Optronics and Bank is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Optronics Technologies 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 Optronics Technologies 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 Optronics Technologies 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 Optronics Technologies i.e., Optronics Technologies and Bank of Greece go up and down completely randomly.
Pair Corralation between Optronics Technologies and Bank of Greece
If you would invest 148.00 in Optronics Technologies SA on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Optronics Technologies SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Optronics Technologies SA vs. Bank of Greece
Performance |
| Timeline |
| Optronics Technologies |
| Bank of Greece |
Optronics Technologies and Bank of Greece Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optronics Technologies and Bank of Greece
The main advantage of trading using opposite Optronics Technologies and Bank of Greece positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optronics Technologies 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.| Optronics Technologies vs. Foodlink AE | Optronics Technologies vs. National Bank of | Optronics Technologies vs. Bank of Greece | Optronics Technologies vs. Profile Systems Software |
| Bank of Greece vs. Intracom Constructions Societe | Bank of Greece vs. Daios Plastics SA | Bank of Greece vs. Sidma SA Steel | Bank of Greece vs. Optronics Technologies SA |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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