Correlation Between Attica Bank and Elton International

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

Diversification Opportunities for Attica Bank and Elton International

0.13

Correlation Coefficient

Attica Bank  Elton International

Average diversification

The 3 months correlation between Attica and Elton is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Attica Bank SA and Elton International Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elton International 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 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 Attica Bank i.e., Attica Bank and Elton International go up and down completely randomly.

Pair Corralation between Attica Bank and Elton International

Assuming the 90 days trading horizon Attica Bank SA is expected to generate 0.97 times more return on investment than Elton International. However, Attica Bank SA is 1.04 times less risky than Elton International. It trades about -0.04 of its potential returns per unit of risk. Elton International Trading is currently generating about -0.09 per unit of risk. If you would invest  1,120  in Attica Bank SA on February 19, 2024 and sell it today you would lose (35.00) from holding Attica Bank SA or give up 3.12% of portfolio value over 90 days.

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

Attica Bank SA  vs.  Elton International Trading

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.

Elton International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Elton International Trading has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Attica Bank and Elton International

The main advantage of trading using opposite Attica Bank and Elton International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Attica Bank 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 Attica Bank SA 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.