Correlation Between Attica Bank and Foodlink
Can any of the company-specific risk be diversified away by investing in both Attica Bank and Foodlink 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 Attica Bank and Foodlink into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Attica Bank SA and Foodlink AE, you can compare the effects of market volatilities on Attica Bank and Foodlink 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 Attica Bank with a short position of Foodlink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Attica Bank and Foodlink.
Diversification Opportunities for Attica Bank and Foodlink
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Attica and Foodlink is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Attica Bank SA and Foodlink AE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foodlink AE and Attica 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 Attica Bank SA are associated (or correlated) with Foodlink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foodlink AE has no effect on the direction of Attica Bank i.e., Attica Bank and Foodlink go up and down completely randomly.
Pair Corralation between Attica Bank and Foodlink
Assuming the 90 days trading horizon Attica Bank SA is expected to under-perform the Foodlink. In addition to that, Attica Bank is 5.22 times more volatile than Foodlink AE. It trades about -0.7 of its total potential returns per unit of risk. Foodlink AE is currently generating about 0.3 per unit of volatility. If you would invest 34.00 in Foodlink AE on September 3, 2024 and sell it today you would earn a total of 6.00 from holding Foodlink AE or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Attica Bank SA vs. Foodlink AE
Performance |
| Timeline |
| Attica Bank SA |
| Foodlink AE |
Attica Bank and Foodlink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Attica Bank and Foodlink
The main advantage of trading using opposite Attica Bank and Foodlink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Attica Bank position performs unexpectedly, Foodlink 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 Foodlink will offset losses from the drop in Foodlink's long position.| Attica Bank vs. Optima bank SA | Attica Bank vs. Technical Olympic SA | Attica Bank vs. Marfin Investment Group | Attica Bank vs. Interlife General Insurance |
| Foodlink vs. Autohellas SA | Foodlink vs. Public Power | Foodlink vs. Intralot SA Integrated | Foodlink vs. Profile Systems Software |
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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