Correlation Between Bankinter and Piraeus Bank
Can any of the company-specific risk be diversified away by investing in both Bankinter and Piraeus Bank 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 Bankinter and Piraeus Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bankinter SA and Piraeus Bank SA, you can compare the effects of market volatilities on Bankinter and Piraeus Bank 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 Bankinter with a short position of Piraeus Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankinter and Piraeus Bank.
Diversification Opportunities for Bankinter and Piraeus Bank
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bankinter and Piraeus is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Bankinter SA and Piraeus Bank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piraeus Bank SA and Bankinter 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 Bankinter SA are associated (or correlated) with Piraeus Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piraeus Bank SA has no effect on the direction of Bankinter i.e., Bankinter and Piraeus Bank go up and down completely randomly.
Pair Corralation between Bankinter and Piraeus Bank
Assuming the 90 days horizon Bankinter is expected to generate 2.35 times less return on investment than Piraeus Bank. But when comparing it to its historical volatility, Bankinter SA is 1.25 times less risky than Piraeus Bank. It trades about 0.04 of its potential returns per unit of risk. Piraeus Bank SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 133.00 in Piraeus Bank SA on September 3, 2024 and sell it today you would earn a total of 239.00 from holding Piraeus Bank SA or generate 179.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 67.27% |
| Values | Daily Returns |
Bankinter SA vs. Piraeus Bank SA
Performance |
| Timeline |
| Bankinter SA |
| Piraeus Bank SA |
Bankinter and Piraeus Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankinter and Piraeus Bank
The main advantage of trading using opposite Bankinter and Piraeus Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankinter position performs unexpectedly, Piraeus Bank 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 Bank will offset losses from the drop in Piraeus Bank's long position.| Bankinter vs. First Hawaiian | Bankinter vs. Central Pacific Financial | Bankinter vs. Territorial Bancorp | Bankinter vs. Comerica |
| Piraeus Bank vs. Bankinter SA ADR | Piraeus Bank vs. JAPAN POST BANK | Piraeus Bank vs. JAPAN POST BANK | Piraeus Bank vs. Eurobank Ergasias Services |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |