Correlation Between Bank of Greece and Attica Publications

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

Diversification Opportunities for Bank of Greece and Attica Publications

0.46

Correlation Coefficient

Bank of Greece  Attica Publications

Very weak diversification

The 3 months correlation between Bank and Attica is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Greece and Attica Publications SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Attica Publications 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 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 Bank of Greece i.e., Bank of Greece and Attica Publications go up and down completely randomly.

Pair Corralation between Bank of Greece and Attica Publications

Assuming the 90 days trading horizon Bank of Greece is expected to generate 11.81 times less return on investment than Attica Publications. But when comparing it to its historical volatility, Bank of Greece is 5.54 times less risky than Attica Publications. It trades about 0.17 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 Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Bank of Greece  vs.  Attica Publications SA

Bank of Greece

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bank of Greece are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Bank of Greece 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 Bank of Greece and Attica Publications

The main advantage of trading using opposite Bank of Greece and Attica Publications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Greece 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 Bank of Greece 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.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.