Correlation Between Bank of Greece and Elvalhalcor Hellenic
Can any of the company-specific risk be diversified away by investing in both Bank of Greece and Elvalhalcor Hellenic 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 Elvalhalcor Hellenic 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 Elvalhalcor Hellenic Copper, you can compare the effects of market volatilities on Bank of Greece and Elvalhalcor Hellenic 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 Elvalhalcor Hellenic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Greece and Elvalhalcor Hellenic.
Diversification Opportunities for Bank of Greece and Elvalhalcor Hellenic
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Elvalhalcor is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Greece and Elvalhalcor Hellenic Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elvalhalcor Hellenic 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 Elvalhalcor Hellenic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elvalhalcor Hellenic has no effect on the direction of Bank of Greece i.e., Bank of Greece and Elvalhalcor Hellenic go up and down completely randomly.
Pair Corralation between Bank of Greece and Elvalhalcor Hellenic
Assuming the 90 days trading horizon Bank of Greece is expected to under-perform the Elvalhalcor Hellenic. But the stock apears to be less risky and, when comparing its historical volatility, Bank of Greece is 2.9 times less risky than Elvalhalcor Hellenic. The stock trades about -0.27 of its potential returns per unit of risk. The Elvalhalcor Hellenic Copper is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 187.00 in Elvalhalcor Hellenic Copper on October 24, 2024 and sell it today you would earn a total of 22.00 from holding Elvalhalcor Hellenic Copper or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Greece vs. Elvalhalcor Hellenic Copper
Performance |
| Timeline |
| Bank of Greece |
| Elvalhalcor Hellenic |
Bank of Greece and Elvalhalcor Hellenic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Greece and Elvalhalcor Hellenic
The main advantage of trading using opposite Bank of Greece and Elvalhalcor Hellenic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Greece position performs unexpectedly, Elvalhalcor Hellenic 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 Elvalhalcor Hellenic will offset losses from the drop in Elvalhalcor Hellenic's long position.| Bank of Greece vs. CPI Computer Peripherals | Bank of Greece vs. Hellenic Telecommunications Organization | Bank of Greece vs. Technical Olympic SA | Bank of Greece vs. Elvalhalcor Hellenic Copper |
| Elvalhalcor Hellenic vs. Cenergy Holdings SA | Elvalhalcor Hellenic vs. Mytilineos SA | Elvalhalcor Hellenic vs. Viohalco SA | Elvalhalcor Hellenic vs. Motor Oil Corinth |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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