Correlation Between Attica Bank and Alpha Trust
Can any of the company-specific risk be diversified away by investing in both Attica Bank and Alpha Trust 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 Bank and Alpha Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Attica Bank SA and Alpha Trust Mutual, you can compare the effects of market volatilities on Attica Bank and Alpha Trust 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 Bank with a short position of Alpha Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Attica Bank and Alpha Trust.
Diversification Opportunities for Attica Bank and Alpha Trust
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Attica and Alpha is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Attica Bank SA and Alpha Trust Mutual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Trust Mutual and Attica Bank 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 Bank SA are associated (or correlated) with Alpha Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Trust Mutual has no effect on the direction of Attica Bank i.e., Attica Bank and Alpha Trust go up and down completely randomly.
Pair Corralation between Attica Bank and Alpha Trust
Assuming the 90 days trading horizon Attica Bank SA is expected to generate 8.56 times more return on investment than Alpha Trust. However, Attica Bank is 8.56 times more volatile than Alpha Trust Mutual. It trades about 0.16 of its potential returns per unit of risk. Alpha Trust Mutual is currently generating about 0.04 per unit of risk. If you would invest 55.00 in Attica Bank SA on December 2, 2024 and sell it today you would earn a total of 16.00 from holding Attica Bank SA or generate 29.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Attica Bank SA vs. Alpha Trust Mutual
Performance |
Timeline |
Attica Bank SA |
Alpha Trust Mutual |
Attica Bank and Alpha Trust Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Attica Bank and Alpha Trust
The main advantage of trading using opposite Attica Bank and Alpha Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Attica Bank position performs unexpectedly, Alpha Trust 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 Alpha Trust will offset losses from the drop in Alpha Trust's long position.Attica Bank vs. Hellenic Telecommunications Organization | Attica Bank vs. Profile Systems Software | Attica Bank vs. Piraeus Financial Holdings | Attica Bank vs. Optronics Technologies SA |
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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 Stocks Directory module to find actively traded stocks across global markets.
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