Correlation Between Austriacard Holdings and Eurobank Ergasias
Can any of the company-specific risk be diversified away by investing in both Austriacard Holdings and Eurobank Ergasias 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 Austriacard Holdings and Eurobank Ergasias into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Austriacard Holdings AG and Eurobank Ergasias Services, you can compare the effects of market volatilities on Austriacard Holdings and Eurobank Ergasias 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 Austriacard Holdings with a short position of Eurobank Ergasias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austriacard Holdings and Eurobank Ergasias.
Diversification Opportunities for Austriacard Holdings and Eurobank Ergasias
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Austriacard and Eurobank is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Austriacard Holdings AG and Eurobank Ergasias Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobank Ergasias and Austriacard Holdings 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 Austriacard Holdings AG are associated (or correlated) with Eurobank Ergasias. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eurobank Ergasias has no effect on the direction of Austriacard Holdings i.e., Austriacard Holdings and Eurobank Ergasias go up and down completely randomly.
Pair Corralation between Austriacard Holdings and Eurobank Ergasias
Assuming the 90 days trading horizon Austriacard Holdings AG is expected to under-perform the Eurobank Ergasias. But the stock apears to be less risky and, when comparing its historical volatility, Austriacard Holdings AG is 1.01 times less risky than Eurobank Ergasias. The stock trades about -0.01 of its potential returns per unit of risk. The Eurobank Ergasias Services is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 96.00 in Eurobank Ergasias Services on August 27, 2024 and sell it today you would earn a total of 108.00 from holding Eurobank Ergasias Services or generate 112.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 84.93% |
| Values | Daily Returns |
Austriacard Holdings AG vs. Eurobank Ergasias Services
Performance |
| Timeline |
| Austriacard Holdings |
| Eurobank Ergasias |
Austriacard Holdings and Eurobank Ergasias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austriacard Holdings and Eurobank Ergasias
The main advantage of trading using opposite Austriacard Holdings and Eurobank Ergasias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austriacard Holdings position performs unexpectedly, Eurobank Ergasias 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 Eurobank Ergasias will offset losses from the drop in Eurobank Ergasias' long position.| Austriacard Holdings vs. National Bank of | Austriacard Holdings vs. As Commercial Industrial | Austriacard Holdings vs. Profile Systems Software | Austriacard Holdings vs. Bank of Greece |
| Eurobank Ergasias vs. Alpha Services and | Eurobank Ergasias vs. Piraeus Financial Holdings | Eurobank Ergasias vs. National Bank of | Eurobank Ergasias vs. Greek Organization of |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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