Correlation Between Bank of Greece and As Commercial
Can any of the company-specific risk be diversified away by investing in both Bank of Greece and As Commercial 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 Bank of Greece and As Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of Greece and As Commercial Industrial, you can compare the effects of market volatilities on Bank of Greece and As Commercial 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 Bank of Greece with a short position of As Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Greece and As Commercial.
Diversification Opportunities for Bank of Greece and As Commercial
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and ASCO is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Greece and As Commercial Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on As Commercial Industrial and Bank of Greece 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 Bank of Greece are associated (or correlated) with As Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of As Commercial Industrial has no effect on the direction of Bank of Greece i.e., Bank of Greece and As Commercial go up and down completely randomly.
Pair Corralation between Bank of Greece and As Commercial
Assuming the 90 days trading horizon Bank of Greece is expected to under-perform the As Commercial. But the stock apears to be less risky and, when comparing its historical volatility, Bank of Greece is 1.27 times less risky than As Commercial. The stock trades about -0.14 of its potential returns per unit of risk. The As Commercial Industrial is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 304.00 in As Commercial Industrial on November 5, 2024 and sell it today you would earn a total of 23.00 from holding As Commercial Industrial or generate 7.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Greece vs. As Commercial Industrial
Performance |
| Timeline |
| Bank of Greece |
| As Commercial Industrial |
Bank of Greece and As Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Greece and As Commercial
The main advantage of trading using opposite Bank of Greece and As Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Greece position performs unexpectedly, As Commercial 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 As Commercial will offset losses from the drop in As Commercial's long position.| Bank of Greece vs. Performance Technologies SA | Bank of Greece vs. Intertech SA Inter | Bank of Greece vs. Karelia Tobacco | Bank of Greece vs. Hellenic Telecommunications Organization |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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