Correlation Between Aozora Bank and Piraeus Financial
Can any of the company-specific risk be diversified away by investing in both Aozora Bank and Piraeus Financial 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 Aozora Bank and Piraeus Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aozora Bank and Piraeus Financial Holdings, you can compare the effects of market volatilities on Aozora Bank and Piraeus Financial 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 Aozora Bank with a short position of Piraeus Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aozora Bank and Piraeus Financial.
Diversification Opportunities for Aozora Bank and Piraeus Financial
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aozora and Piraeus is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Aozora Bank and Piraeus Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piraeus Financial and Aozora 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 Aozora Bank are associated (or correlated) with Piraeus Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piraeus Financial has no effect on the direction of Aozora Bank i.e., Aozora Bank and Piraeus Financial go up and down completely randomly.
Pair Corralation between Aozora Bank and Piraeus Financial
If you would invest 379.00 in Piraeus Financial Holdings on October 22, 2024 and sell it today you would earn a total of 0.00 from holding Piraeus Financial Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aozora Bank vs. Piraeus Financial Holdings
Performance |
| Timeline |
| Aozora Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Piraeus Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aozora Bank and Piraeus Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aozora Bank and Piraeus Financial
The main advantage of trading using opposite Aozora Bank and Piraeus Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aozora Bank position performs unexpectedly, Piraeus Financial 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 Piraeus Financial will offset losses from the drop in Piraeus Financial's long position.| Aozora Bank vs. Taiwan Semiconductor Manufacturing | Aozora Bank vs. Globalfoundries | Aozora Bank vs. Arm Holdings plc | Aozora Bank vs. Semtech |
| Piraeus Financial vs. Alpha Bank SA | Piraeus Financial vs. Eurobank Ergasias SA | Piraeus Financial vs. Piraeus Bank SA | Piraeus Financial vs. First Citizens BancShares |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |