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The Application of Fundamental Analysis and Technical Analysis in the Athens Derivatives Exchange (ADEX)

Nikolaos Pavlou, George Blanas, Pavlos Golemis

Article

Derivatives Market in Greece is under development and investors have a clear lack of advising upon this market. Analysts may say that derivatives have low risk, however investing on them does not always return profits. That is why financial analysis is useful, to inform investors. In this paper we try to apply a financial analysis on derivatives market through two different approaches. The fundamental analysis (FA) investigates a firm’s performance through its financial statements and the technical analysis (TA) takes into consideration the past closing prices of the security. The FA will be set through five different kinds of financial ratios for the last five years and TA through five technical indicators for the last three years. Evaluating the results of each method, we try to find whether there is relation with their sector, index, size, establishment date and import date to ASE or not. Our findings show that in both methods there is no strong correlation between the performance and the five different factors, so stock performance is depending on preferences of the investors and not on the directive factors.

Keywords

Round Building

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