Correlation Between Optima Bank and Elvalhalcor Hellenic

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Optima Bank and Elvalhalcor Hellenic 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 Optima Bank and Elvalhalcor Hellenic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Optima bank SA and Elvalhalcor Hellenic Copper, you can compare the effects of market volatilities on Optima Bank and Elvalhalcor Hellenic 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 Optima Bank with a short position of Elvalhalcor Hellenic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optima Bank and Elvalhalcor Hellenic.

Diversification Opportunities for Optima Bank and Elvalhalcor Hellenic

OptimaElvalhalcorDiversified AwayOptimaElvalhalcorDiversified Away100%
0.32
  Correlation Coefficient

Weak diversification

The 3 months correlation between Optima and Elvalhalcor is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Optima bank SA and Elvalhalcor Hellenic Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elvalhalcor Hellenic and Optima 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 Optima bank SA are associated (or correlated) with Elvalhalcor Hellenic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elvalhalcor Hellenic has no effect on the direction of Optima Bank i.e., Optima Bank and Elvalhalcor Hellenic go up and down completely randomly.

Pair Corralation between Optima Bank and Elvalhalcor Hellenic

Assuming the 90 days trading horizon Optima bank SA is expected to under-perform the Elvalhalcor Hellenic. But the stock apears to be less risky and, when comparing its historical volatility, Optima bank SA is 1.97 times less risky than Elvalhalcor Hellenic. The stock trades about -0.04 of its potential returns per unit of risk. The Elvalhalcor Hellenic Copper is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  185.00  in Elvalhalcor Hellenic Copper on September 14, 2024 and sell it today you would earn a total of  3.00  from holding Elvalhalcor Hellenic Copper or generate 1.62% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Optima bank SA  vs.  Elvalhalcor Hellenic Copper

 Performance 
JavaScript chart by amCharts 3.21.15OctNov -505
JavaScript chart by amCharts 3.21.15OPTIMA ELHA
       Timeline  
Optima bank SA 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Optima bank SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Optima Bank is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec12.412.612.81313.213.4
Elvalhalcor Hellenic 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Elvalhalcor Hellenic Copper are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Elvalhalcor Hellenic is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec1.651.71.751.81.851.91.95

Optima Bank and Elvalhalcor Hellenic Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.47-1.09-0.71-0.33-0.01850.270.651.031.41 0.10.20.30.4
JavaScript chart by amCharts 3.21.15OPTIMA ELHA
       Returns  

Pair Trading with Optima Bank and Elvalhalcor Hellenic

The main advantage of trading using opposite Optima Bank and Elvalhalcor Hellenic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optima Bank position performs unexpectedly, Elvalhalcor Hellenic 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 Elvalhalcor Hellenic will offset losses from the drop in Elvalhalcor Hellenic's long position.
The idea behind Optima bank SA and Elvalhalcor Hellenic Copper 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.
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 Global Correlations module to find global opportunities by holding instruments from different markets.

Other Complementary Tools

Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Fundamental Analysis
View fundamental data based on most recent published financial statements
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.