Correlation Between Piraeus Financial and New York
Can any of the company-specific risk be diversified away by investing in both Piraeus Financial and New York 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 New York 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 New York Community, you can compare the effects of market volatilities on Piraeus Financial and New York 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 New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Financial and New York.
Diversification Opportunities for Piraeus Financial and New York
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Piraeus and New is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Financial Holdings and New York Community in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Community 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 New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Community has no effect on the direction of Piraeus Financial i.e., Piraeus Financial and New York go up and down completely randomly.
Pair Corralation between Piraeus Financial and New York
If you would invest 1,061 in New York Community on August 29, 2024 and sell it today you would earn a total of 132.00 from holding New York Community or generate 12.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 6.67% |
| Values | Daily Returns |
Piraeus Financial Holdings vs. New York Community
Performance |
| Timeline |
| Piraeus Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| New York Community |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Piraeus Financial and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Financial and New York
The main advantage of trading using opposite Piraeus Financial and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Financial position performs unexpectedly, New York 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 New York will offset losses from the drop in New York'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 |
| New York vs. KeyCorp | New York vs. Fifth Third Bancorp | New York vs. Regions Financial | New York vs. Zions Bancorporation |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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