Correlation Between Piraeus Financial and Alpha Bank
Can any of the company-specific risk be diversified away by investing in both Piraeus Financial and Alpha 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 Piraeus Financial and Alpha Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Piraeus Financial Holdings and Alpha Bank SA, you can compare the effects of market volatilities on Piraeus Financial and Alpha 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 Piraeus Financial with a short position of Alpha Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Financial and Alpha Bank.
Diversification Opportunities for Piraeus Financial and Alpha Bank
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Piraeus and Alpha is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Financial Holdings and Alpha Bank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Bank SA and Piraeus Financial 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 Piraeus Financial Holdings are associated (or correlated) with Alpha Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Bank SA has no effect on the direction of Piraeus Financial i.e., Piraeus Financial and Alpha Bank go up and down completely randomly.
Pair Corralation between Piraeus Financial and Alpha Bank
If you would invest 39.00 in Alpha Bank SA on November 4, 2024 and sell it today you would earn a total of 3.00 from holding Alpha Bank SA or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Piraeus Financial Holdings vs. Alpha Bank SA
Performance |
| Timeline |
| Piraeus Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alpha Bank SA |
Piraeus Financial and Alpha Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Financial and Alpha Bank
The main advantage of trading using opposite Piraeus Financial and Alpha Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Financial position performs unexpectedly, Alpha 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 Alpha Bank will offset losses from the drop in Alpha Bank's long position.| Piraeus Financial vs. Alpha Bank SA | Piraeus Financial vs. Eurobank Ergasias SA | Piraeus Financial vs. Piraeus Bank SA | Piraeus Financial vs. First Citizens BancShares |
| Alpha Bank vs. National Bank of | Alpha Bank vs. Piraeus Bank SA | Alpha Bank vs. Eurobank Ergasias SA | Alpha Bank 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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