Correlation Between Bank of Greece and Lampsa Hellenic
Can any of the company-specific risk be diversified away by investing in both Bank of Greece and Lampsa 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 Lampsa 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 Lampsa Hellenic Hotels, you can compare the effects of market volatilities on Bank of Greece and Lampsa 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 Lampsa Hellenic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Greece and Lampsa Hellenic.
Diversification Opportunities for Bank of Greece and Lampsa Hellenic
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and Lampsa is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Greece and Lampsa Hellenic Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lampsa Hellenic Hotels 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 Lampsa Hellenic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lampsa Hellenic Hotels has no effect on the direction of Bank of Greece i.e., Bank of Greece and Lampsa Hellenic go up and down completely randomly.
Pair Corralation between Bank of Greece and Lampsa Hellenic
Assuming the 90 days trading horizon Bank of Greece is expected to generate 4.78 times more return on investment than Lampsa Hellenic. However, Bank of Greece is 4.78 times more volatile than Lampsa Hellenic Hotels. It trades about 0.0 of its potential returns per unit of risk. Lampsa Hellenic Hotels is currently generating about 0.0 per unit of risk. If you would invest 1,320 in Bank of Greece on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Bank of Greece or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Greece vs. Lampsa Hellenic Hotels
Performance |
| Timeline |
| Bank of Greece |
| Lampsa Hellenic Hotels |
Bank of Greece and Lampsa Hellenic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Greece and Lampsa Hellenic
The main advantage of trading using opposite Bank of Greece and Lampsa Hellenic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Greece position performs unexpectedly, Lampsa 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 Lampsa Hellenic will offset losses from the drop in Lampsa Hellenic's long position.| Bank of Greece vs. Eurobank Ergasias Services | Bank of Greece vs. National Bank of | Bank of Greece vs. EL D Mouzakis | Bank of Greece vs. Lampsa Hellenic Hotels |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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