Correlation Between Piraeus Financial and United Bancorp
Can any of the company-specific risk be diversified away by investing in both Piraeus Financial and United 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 United 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 United Bancorp, you can compare the effects of market volatilities on Piraeus Financial and United 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 United Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Financial and United Bancorp.
Diversification Opportunities for Piraeus Financial and United Bancorp
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Piraeus and United is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Financial Holdings and United Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United 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 United Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Bancorp has no effect on the direction of Piraeus Financial i.e., Piraeus Financial and United Bancorp go up and down completely randomly.
Pair Corralation between Piraeus Financial and United Bancorp
Assuming the 90 days horizon Piraeus Financial Holdings is expected to generate 1.86 times more return on investment than United Bancorp. However, Piraeus Financial is 1.86 times more volatile than United Bancorp. It trades about 0.1 of its potential returns per unit of risk. United Bancorp is currently generating about 0.01 per unit of risk. If you would invest 211.00 in Piraeus Financial Holdings on October 29, 2024 and sell it today you would earn a total of 168.00 from holding Piraeus Financial Holdings or generate 79.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 32.12% |
| Values | Daily Returns |
Piraeus Financial Holdings vs. United Bancorp
Performance |
| Timeline |
| Piraeus Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| United Bancorp |
Piraeus Financial and United Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Financial and United Bancorp
The main advantage of trading using opposite Piraeus Financial and United Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Financial position performs unexpectedly, United 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 United Bancorp will offset losses from the drop in United 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 |
| United Bancorp vs. Rhinebeck Bancorp | United Bancorp vs. Shore Bancshares | United Bancorp vs. First Northwest Bancorp | United Bancorp vs. Community West 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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