Correlation Between Piraeus Financial and Washington Trust
Can any of the company-specific risk be diversified away by investing in both Piraeus Financial and Washington Trust 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 Washington Trust 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 Washington Trust Bancorp, you can compare the effects of market volatilities on Piraeus Financial and Washington Trust 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 Washington Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Financial and Washington Trust.
Diversification Opportunities for Piraeus Financial and Washington Trust
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Piraeus and Washington is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Financial Holdings and Washington Trust Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Washington Trust 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 Washington Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Washington Trust Bancorp has no effect on the direction of Piraeus Financial i.e., Piraeus Financial and Washington Trust go up and down completely randomly.
Pair Corralation between Piraeus Financial and Washington Trust
If you would invest 3,055 in Washington Trust Bancorp on October 29, 2024 and sell it today you would earn a total of 192.00 from holding Washington Trust Bancorp or generate 6.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Piraeus Financial Holdings vs. Washington Trust Bancorp
Performance |
| Timeline |
| Piraeus Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Washington Trust Bancorp |
Piraeus Financial and Washington Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Financial and Washington Trust
The main advantage of trading using opposite Piraeus Financial and Washington Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Financial position performs unexpectedly, Washington Trust 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 Washington Trust will offset losses from the drop in Washington Trust'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 |
| Washington Trust vs. Univest Pennsylvania | Washington Trust vs. Waterstone Financial | Washington Trust vs. Mid Penn Bancorp | Washington Trust vs. ST Bancorp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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