Correlation Between Attica Bank and Piraeus Financial
Can any of the company-specific risk be diversified away by investing in both Attica Bank and Piraeus Financial 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 Piraeus Financial 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 Piraeus Financial Holdings, you can compare the effects of market volatilities on Attica Bank and Piraeus Financial 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 Piraeus Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Attica Bank and Piraeus Financial.
Diversification Opportunities for Attica Bank and Piraeus Financial
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Attica and Piraeus is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Attica Bank SA and Piraeus Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piraeus Financial 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 Piraeus Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piraeus Financial has no effect on the direction of Attica Bank i.e., Attica Bank and Piraeus Financial go up and down completely randomly.
Pair Corralation between Attica Bank and Piraeus Financial
Assuming the 90 days trading horizon Attica Bank SA is expected to generate 0.68 times more return on investment than Piraeus Financial. However, Attica Bank SA is 1.46 times less risky than Piraeus Financial. It trades about 0.04 of its potential returns per unit of risk. Piraeus Financial Holdings is currently generating about -0.01 per unit of risk. If you would invest 1,095 in Attica Bank SA on February 28, 2024 and sell it today you would earn a total of 30.00 from holding Attica Bank SA or generate 2.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Attica Bank SA vs. Piraeus Financial Holdings
Performance |
Timeline |
Attica Bank SA |
Piraeus Financial |
Attica Bank and Piraeus Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Attica Bank and Piraeus Financial
The main advantage of trading using opposite Attica Bank and Piraeus Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Attica Bank position performs unexpectedly, Piraeus Financial 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 Piraeus Financial will offset losses from the drop in Piraeus Financial's long position.Attica Bank vs. Eurobank Ergasias Services | Attica Bank vs. Bank of Greece | Attica Bank vs. National Bank of | Attica Bank vs. Lampsa Hellenic Hotels |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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