Correlation Between Bank of Greece and Thessaloniki Port
Can any of the company-specific risk be diversified away by investing in both Bank of Greece and Thessaloniki Port 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 Thessaloniki Port 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 Thessaloniki Port Authority, you can compare the effects of market volatilities on Bank of Greece and Thessaloniki Port 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 Thessaloniki Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Greece and Thessaloniki Port.
Diversification Opportunities for Bank of Greece and Thessaloniki Port
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Thessaloniki is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Greece and Thessaloniki Port Authority in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thessaloniki Port 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 Thessaloniki Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thessaloniki Port has no effect on the direction of Bank of Greece i.e., Bank of Greece and Thessaloniki Port go up and down completely randomly.
Pair Corralation between Bank of Greece and Thessaloniki Port
Assuming the 90 days trading horizon Bank of Greece is expected to generate 81.23 times less return on investment than Thessaloniki Port. But when comparing it to its historical volatility, Bank of Greece is 1.4 times less risky than Thessaloniki Port. It trades about 0.0 of its potential returns per unit of risk. Thessaloniki Port Authority is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,080 in Thessaloniki Port Authority on September 3, 2024 and sell it today you would earn a total of 110.00 from holding Thessaloniki Port Authority or generate 5.29% 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. Thessaloniki Port Authority
Performance |
| Timeline |
| Bank of Greece |
| Thessaloniki Port |
Bank of Greece and Thessaloniki Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Greece and Thessaloniki Port
The main advantage of trading using opposite Bank of Greece and Thessaloniki Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Greece position performs unexpectedly, Thessaloniki Port 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 Thessaloniki Port will offset losses from the drop in Thessaloniki Port's long position.| Bank of Greece vs. Lampsa Hellenic Hotels | Bank of Greece vs. Athens Medical CSA | Bank of Greece vs. Marfin Investment Group | Bank of Greece vs. Profile Systems Software |
| Thessaloniki Port vs. Attica Holdings SA | Thessaloniki Port vs. Piraeus Port Authority | Thessaloniki Port vs. National Bank of | Thessaloniki Port vs. N Leventeris 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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