Correlation Between Bank of Greece and Quest Holdings

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

Diversification Opportunities for Bank of Greece and Quest Holdings

0.76

Correlation Coefficient

Bank of Greece  Quest Holdings

Poor diversification

The 3 months correlation between Bank and Quest is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Greece and Quest Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quest Holdings SA 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 Quest Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quest Holdings SA has no effect on the direction of Bank of Greece i.e., Bank of Greece and Quest Holdings go up and down completely randomly.

Pair Corralation between Bank of Greece and Quest Holdings

Assuming the 90 days trading horizon Bank of Greece is expected to generate 2.58 times less return on investment than Quest Holdings. But when comparing it to its historical volatility, Bank of Greece is 1.58 times less risky than Quest Holdings. It trades about 0.07 of its potential returns per unit of risk. Quest Holdings SA is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  596.00  in Quest Holdings SA on July 30, 2025 and sell it today you would earn a total of  137.00  from holding Quest Holdings SA or generate 22.99% return on investment over 90 days.

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

Bank of Greece  vs.  Quest Holdings SA

Bank of Greece

Risk-Adjusted Performance

Weakest

Over the last 90 days Bank of Greece has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Bank of Greece is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Quest Holdings SA

Risk-Adjusted Performance

Weakest

Over the last 90 days Quest Holdings SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Quest Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bank of Greece and Quest Holdings

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

The idea behind Bank of Greece and Quest Holdings 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.