Correlation Between Attica Publications and Athens Medical

Can any of the company-specific risk be diversified away by investing in both Attica Publications and Athens Medical 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 Attica Publications and Athens Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Attica Publications SA and Athens Medical CSA, you can compare the effects of market volatilities on Attica Publications and Athens Medical 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 Attica Publications with a short position of Athens Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Attica Publications and Athens Medical.

Diversification Opportunities for Attica Publications and Athens Medical

0.93

Correlation Coefficient

Attica Publications  Athens Medical

Almost no diversification

The 3 months correlation between Attica and Athens is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Attica Publications SA and Athens Medical CSA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Athens Medical CSA and Attica Publications 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 Attica Publications SA are associated (or correlated) with Athens Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Athens Medical CSA has no effect on the direction of Attica Publications i.e., Attica Publications and Athens Medical go up and down completely randomly.

Pair Corralation between Attica Publications and Athens Medical

Assuming the 90 days trading horizon Attica Publications SA is expected to generate 2.74 times more return on investment than Athens Medical. However, Attica Publications is 2.74 times more volatile than Athens Medical CSA. It trades about 0.24 of its potential returns per unit of risk. Athens Medical CSA is currently generating about 0.18 per unit of risk. If you would invest  46.00  in Attica Publications SA on December 28, 2024 and sell it today you would earn a total of  63.00  from holding Attica Publications SA or generate 136.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Attica Publications SA  vs.  Athens Medical CSA

Attica Publications

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Attica Publications SA are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Attica Publications unveiled solid returns over the last few months and may actually be approaching a breakup point.

Athens Medical CSA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Athens Medical CSA are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Athens Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Attica Publications and Athens Medical

The main advantage of trading using opposite Attica Publications and Athens Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Attica Publications position performs unexpectedly, Athens Medical 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 Athens Medical will offset losses from the drop in Athens Medical's long position.

The idea behind Attica Publications SA and Athens Medical CSA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.