Correlation Between Bank of Greece and Technical Olympic
Can any of the company-specific risk be diversified away by investing in both Bank of Greece and Technical Olympic 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 Technical Olympic 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 Technical Olympic SA, you can compare the effects of market volatilities on Bank of Greece and Technical Olympic 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 Technical Olympic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Greece and Technical Olympic.
Diversification Opportunities for Bank of Greece and Technical Olympic
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Technical is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Greece and Technical Olympic SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technical Olympic 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 Technical Olympic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technical Olympic has no effect on the direction of Bank of Greece i.e., Bank of Greece and Technical Olympic go up and down completely randomly.
Pair Corralation between Bank of Greece and Technical Olympic
Assuming the 90 days trading horizon Bank of Greece is expected to generate 0.66 times more return on investment than Technical Olympic. However, Bank of Greece is 1.51 times less risky than Technical Olympic. It trades about 0.15 of its potential returns per unit of risk. Technical Olympic SA is currently generating about 0.04 per unit of risk. If you would invest 1,435 in Bank of Greece on November 29, 2024 and sell it today you would earn a total of 30.00 from holding Bank of Greece or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Greece vs. Technical Olympic SA
Performance |
| Timeline |
| Bank of Greece |
| Technical Olympic |
Bank of Greece and Technical Olympic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Greece and Technical Olympic
The main advantage of trading using opposite Bank of Greece and Technical Olympic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Greece position performs unexpectedly, Technical Olympic 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 Technical Olympic will offset losses from the drop in Technical Olympic's long position.| Bank of Greece vs. CPI Computer Peripherals | Bank of Greece vs. Aegean Airlines SA | Bank of Greece vs. Profile Systems Software | Bank of Greece vs. Hellenic Telecommunications Organization |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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