Correlation Between Sato Office and Attica Bank

Can any of the company-specific risk be diversified away by investing in both Sato Office and Attica Bank 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 Sato Office and Attica Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sato office and and Attica Bank SA, you can compare the effects of market volatilities on Sato Office and Attica Bank 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 Sato Office with a short position of Attica Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sato Office and Attica Bank.

Diversification Opportunities for Sato Office and Attica Bank

-0.13

Correlation Coefficient

Sato Office  Attica Bank

Good diversification

The 3 months correlation between Sato and Attica is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Sato office and and Attica Bank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Attica Bank SA and Sato Office 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 Sato office and are associated (or correlated) with Attica Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Attica Bank SA has no effect on the direction of Sato Office i.e., Sato Office and Attica Bank go up and down completely randomly.

Pair Corralation between Sato Office and Attica Bank

Assuming the 90 days trading horizon Sato office and is expected to generate 2.84 times more return on investment than Attica Bank. However, Sato Office is 2.84 times more volatile than Attica Bank SA. It trades about 0.02 of its potential returns per unit of risk. Attica Bank SA is currently generating about 0.01 per unit of risk. If you would invest  4.70  in Sato office and on February 8, 2024 and sell it today you would earn a total of  0.00  from holding Sato office and or generate 0.0% return on investment over 90 days.

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

Sato office and  vs.  Attica Bank SA

Sato office

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sato office and has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward-looking signals, Sato Office is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

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 comparatively stable basic indicators, Attica Bank is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Sato Office and Attica Bank

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

The idea behind Sato office and and Attica Bank 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.