Correlation Between Attica Bank and Autohellas

Can any of the company-specific risk be diversified away by investing in both Attica Bank and Autohellas 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 Autohellas 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 Autohellas SA, you can compare the effects of market volatilities on Attica Bank and Autohellas 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 Autohellas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Attica Bank and Autohellas.

Diversification Opportunities for Attica Bank and Autohellas

0.81

Correlation Coefficient

Attica Bank  Autohellas

Very poor diversification

The 3 months correlation between Attica and Autohellas is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Attica Bank SA and Autohellas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autohellas SA 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 Autohellas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autohellas SA has no effect on the direction of Attica Bank i.e., Attica Bank and Autohellas go up and down completely randomly.

Pair Corralation between Attica Bank and Autohellas

Assuming the 90 days trading horizon Attica Bank SA is expected to under-perform the Autohellas. In addition to that, Attica Bank is 30.12 times more volatile than Autohellas SA. It trades about -0.01 of its total potential returns per unit of risk. Autohellas SA is currently generating about -0.08 per unit of volatility. If you would invest  1,096  in Autohellas SA on September 12, 2024 and sell it today you would lose (72.00) from holding Autohellas SA or give up 6.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	95.31%
Values	Daily Returns

Attica Bank SA  vs.  Autohellas SA

Attica Bank SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Attica Bank SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Autohellas SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Autohellas SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Autohellas is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Attica Bank and Autohellas

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

The idea behind Attica Bank SA and Autohellas 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.

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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.