Correlation Between Bank of Greece and Hellenic Exchanges
Can any of the company-specific risk be diversified away by investing in both Bank of Greece and Hellenic Exchanges 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 Hellenic Exchanges 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 Hellenic Exchanges , you can compare the effects of market volatilities on Bank of Greece and Hellenic Exchanges 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 Hellenic Exchanges. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Greece and Hellenic Exchanges.
Diversification Opportunities for Bank of Greece and Hellenic Exchanges
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bank and Hellenic is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Greece and Hellenic Exchanges in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hellenic Exchanges 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 Hellenic Exchanges. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hellenic Exchanges has no effect on the direction of Bank of Greece i.e., Bank of Greece and Hellenic Exchanges go up and down completely randomly.
Pair Corralation between Bank of Greece and Hellenic Exchanges
Assuming the 90 days trading horizon Bank of Greece is expected to under-perform the Hellenic Exchanges. But the stock apears to be less risky and, when comparing its historical volatility, Bank of Greece is 1.51 times less risky than Hellenic Exchanges. The stock trades about -0.02 of its potential returns per unit of risk. The Hellenic Exchanges is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 411.00 in Hellenic Exchanges on November 5, 2024 and sell it today you would earn a total of 86.00 from holding Hellenic Exchanges or generate 20.92% 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. Hellenic Exchanges
Performance |
| Timeline |
| Bank of Greece |
| Hellenic Exchanges |
Bank of Greece and Hellenic Exchanges Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Greece and Hellenic Exchanges
The main advantage of trading using opposite Bank of Greece and Hellenic Exchanges positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Greece position performs unexpectedly, Hellenic Exchanges 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 Hellenic Exchanges will offset losses from the drop in Hellenic Exchanges' 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 |
| Hellenic Exchanges vs. Greek Organization of | Hellenic Exchanges vs. Mytilineos SA | Hellenic Exchanges vs. Hellenic Telecommunications Organization | Hellenic Exchanges vs. Hellenic Petroleum 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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