Correlation Between Bank of Greece and EL D
Can any of the company-specific risk be diversified away by investing in both Bank of Greece 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 Bank of Greece and EL D 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 EL D Mouzakis, you can compare the effects of market volatilities on Bank of Greece 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 Bank of Greece with a short position of EL D. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Greece and EL D.
Diversification Opportunities for Bank of Greece and EL D
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and MOYZK is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Greece 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 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 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 Bank of Greece i.e., Bank of Greece and EL D go up and down completely randomly.
Pair Corralation between Bank of Greece and EL D
Assuming the 90 days trading horizon Bank of Greece is expected to generate 0.63 times more return on investment than EL D. However, Bank of Greece is 1.58 times less risky than EL D. It trades about 0.2 of its potential returns per unit of risk. EL D Mouzakis is currently generating about 0.03 per unit of risk. If you would invest 1,310 in Bank of Greece on October 26, 2024 and sell it today you would earn a total of 125.00 from holding Bank of Greece or generate 9.54% 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. EL D Mouzakis
Performance |
| Timeline |
| Bank of Greece |
| EL D Mouzakis |
Bank of Greece and EL D Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Greece and EL D
The main advantage of trading using opposite Bank of Greece and EL D positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Greece 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.| Bank of Greece vs. Alpha Services and | Bank of Greece vs. Piraeus Financial Holdings | Bank of Greece vs. National Bank of | Bank of Greece vs. Greek Organization of |
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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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