Correlation Between Attica Bank and EL D
Can any of the company-specific risk be diversified away by investing in both Attica Bank and EL D 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 EL D 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 EL D Mouzakis, you can compare the effects of market volatilities on Attica Bank and EL D 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 EL D. Check out your portfolio center. Please also check ongoing floating volatility patterns of Attica Bank and EL D.
Diversification Opportunities for Attica Bank and EL D
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Attica and MOYZK is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Attica Bank SA and EL D Mouzakis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EL D Mouzakis 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 EL D. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EL D Mouzakis has no effect on the direction of Attica Bank i.e., Attica Bank and EL D go up and down completely randomly.
Pair Corralation between Attica Bank and EL D
Assuming the 90 days trading horizon Attica Bank SA is expected to under-perform the EL D. But the stock apears to be less risky and, when comparing its historical volatility, Attica Bank SA is 1.64 times less risky than EL D. The stock trades about -0.24 of its potential returns per unit of risk. The EL D Mouzakis is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 67.00 in EL D Mouzakis on November 5, 2024 and sell it today you would lose (1.00) from holding EL D Mouzakis or give up 1.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Attica Bank SA vs. EL D Mouzakis
Performance |
| Timeline |
| Attica Bank SA |
| EL D Mouzakis |
Attica Bank and EL D Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Attica Bank and EL D
The main advantage of trading using opposite Attica Bank and EL D positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Attica Bank position performs unexpectedly, EL D 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 EL D will offset losses from the drop in EL D's long position.| Attica Bank vs. Profile Systems Software | Attica Bank vs. Logismos Information Systems | Attica Bank vs. Aegean Airlines SA | Attica Bank vs. National Bank of |
| EL D vs. CPI Computer Peripherals | EL D vs. Intertech SA Inter | EL D vs. Hellenic Telecommunications Organization | EL D vs. Logismos Information Systems |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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