Correlation Between Bank of Greece and Elton International

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

Diversification Opportunities for Bank of Greece and Elton International

0.11

Correlation Coefficient

Bank of Greece  Elton International

Average diversification

The 3 months correlation between Bank and Elton is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Greece and Elton International Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elton International 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 Elton International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elton International has no effect on the direction of Bank of Greece i.e., Bank of Greece and Elton International go up and down completely randomly.

Pair Corralation between Bank of Greece and Elton International

Assuming the 90 days trading horizon Bank of Greece is expected to generate 0.69 times more return on investment than Elton International. However, Bank of Greece is 1.45 times less risky than Elton International. It trades about 0.02 of its potential returns per unit of risk. Elton International Trading is currently generating about 0.01 per unit of risk. If you would invest  1,350  in Bank of Greece on September 17, 2024 and sell it today you would earn a total of  60.00  from holding Bank of Greece or generate 4.44% return on investment over 90 days.

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

Bank of Greece  vs.  Elton International Trading

Bank of Greece

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bank of Greece are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Bank of Greece is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Elton International

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Elton International Trading are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Elton International sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bank of Greece and Elton International

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

The idea behind Bank of Greece and Elton International Trading 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.