Correlation Between Piraeus Financial and Andover Bancorp
Can any of the company-specific risk be diversified away by investing in both Piraeus Financial and Andover Bancorp 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 Andover Bancorp 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 Andover Bancorp, you can compare the effects of market volatilities on Piraeus Financial and Andover Bancorp 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 Andover Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Financial and Andover Bancorp.
Diversification Opportunities for Piraeus Financial and Andover Bancorp
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Piraeus and Andover is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Financial Holdings and Andover Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andover Bancorp 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 Andover Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andover Bancorp has no effect on the direction of Piraeus Financial i.e., Piraeus Financial and Andover Bancorp go up and down completely randomly.
Pair Corralation between Piraeus Financial and Andover Bancorp
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 Against |
| Strength | Very Weak |
| Accuracy | 5.56% |
| Values | Daily Returns |
Piraeus Financial Holdings vs. Andover Bancorp
Performance |
| Timeline |
| Piraeus Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Andover Bancorp |
Piraeus Financial and Andover Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Financial and Andover Bancorp
The main advantage of trading using opposite Piraeus Financial and Andover Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Financial position performs unexpectedly, Andover Bancorp 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 Andover Bancorp will offset losses from the drop in Andover Bancorp'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 |
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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