Correlation Between Bank of Greece and VIDAVO SA
Can any of the company-specific risk be diversified away by investing in both Bank of Greece and VIDAVO SA 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 VIDAVO SA 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 VIDAVO SA, you can compare the effects of market volatilities on Bank of Greece and VIDAVO SA 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 VIDAVO SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Greece and VIDAVO SA.
Diversification Opportunities for Bank of Greece and VIDAVO SA
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and VIDAVO is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Greece and VIDAVO SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIDAVO SA 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 VIDAVO SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIDAVO SA has no effect on the direction of Bank of Greece i.e., Bank of Greece and VIDAVO SA go up and down completely randomly.
Pair Corralation between Bank of Greece and VIDAVO SA
Assuming the 90 days trading horizon Bank of Greece is expected to under-perform the VIDAVO SA. But the stock apears to be less risky and, when comparing its historical volatility, Bank of Greece is 2.46 times less risky than VIDAVO SA. The stock trades about -0.04 of its potential returns per unit of risk. The VIDAVO SA is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 258.00 in VIDAVO SA on September 2, 2024 and sell it today you would earn a total of 24.00 from holding VIDAVO SA or generate 9.3% 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. VIDAVO SA
Performance |
| Timeline |
| Bank of Greece |
| VIDAVO SA |
Bank of Greece and VIDAVO SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Greece and VIDAVO SA
The main advantage of trading using opposite Bank of Greece and VIDAVO SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Greece position performs unexpectedly, VIDAVO SA 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 VIDAVO SA will offset losses from the drop in VIDAVO SA'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 |
| VIDAVO SA vs. Sidma SA Steel | VIDAVO SA vs. CPI Computer Peripherals | VIDAVO SA vs. Bank of Greece | VIDAVO SA vs. Elvalhalcor Hellenic Copper |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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