Correlation Between Prodea Real and Attica Publications

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

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

Diversification Opportunities for Prodea Real and Attica Publications

-0.42

Correlation Coefficient

Prodea Real  Attica Publications

Very good diversification

The 3 months correlation between Prodea and Attica is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Prodea Real Estate and Attica Publications SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Attica Publications and Prodea Real 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 Prodea Real Estate are associated (or correlated) with Attica Publications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Attica Publications has no effect on the direction of Prodea Real i.e., Prodea Real and Attica Publications go up and down completely randomly.

Pair Corralation between Prodea Real and Attica Publications

Assuming the 90 days trading horizon Prodea Real is expected to generate 14.4 times less return on investment than Attica Publications. But when comparing it to its historical volatility, Prodea Real Estate is 2.12 times less risky than Attica Publications. It trades about 0.05 of its potential returns per unit of risk. Attica Publications SA is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest  43.00  in Attica Publications SA on December 2, 2024 and sell it today you would earn a total of  94.00  from holding Attica Publications SA or generate 218.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	93.44%
Values	Daily Returns

Prodea Real Estate  vs.  Attica Publications SA

Prodea Real Estate

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Prodea Real Estate are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Prodea Real may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Attica Publications

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Attica Publications SA are ranked lower than 28 (%) 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.

Pair Trading with Prodea Real and Attica Publications

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

The idea behind Prodea Real Estate and Attica Publications SA 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.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.