Correlation Between Piraeus Financial and Bankinter
Can any of the company-specific risk be diversified away by investing in both Piraeus Financial and Bankinter 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 Bankinter 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 Bankinter SA ADR, you can compare the effects of market volatilities on Piraeus Financial and Bankinter 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 Bankinter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Financial and Bankinter.
Diversification Opportunities for Piraeus Financial and Bankinter
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Piraeus and Bankinter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Financial Holdings and Bankinter SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankinter SA ADR 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 Bankinter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankinter SA ADR has no effect on the direction of Piraeus Financial i.e., Piraeus Financial and Bankinter go up and down completely randomly.
Pair Corralation between Piraeus Financial and Bankinter
If you would invest 890.00 in Bankinter SA ADR on November 27, 2024 and sell it today you would earn a total of 81.00 from holding Bankinter SA ADR or generate 9.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Piraeus Financial Holdings vs. Bankinter SA ADR
Performance |
| Timeline |
| Piraeus Financial |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Bankinter SA ADR |
Piraeus Financial and Bankinter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Financial and Bankinter
The main advantage of trading using opposite Piraeus Financial and Bankinter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Financial position performs unexpectedly, Bankinter 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 Bankinter will offset losses from the drop in Bankinter'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 |
| Bankinter vs. Bank Hapoalim ADR | Bankinter vs. Bank of East | Bankinter vs. BOC Hong Kong | Bankinter vs. Commercial International Bank |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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