Correlation Between Piraeus Bank and Baraboo Bancorporation
Can any of the company-specific risk be diversified away by investing in both Piraeus Bank and Baraboo Bancorporation 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 Bank and Baraboo Bancorporation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Piraeus Bank SA and Baraboo Bancorporation, you can compare the effects of market volatilities on Piraeus Bank and Baraboo Bancorporation 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 Bank with a short position of Baraboo Bancorporation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Bank and Baraboo Bancorporation.
Diversification Opportunities for Piraeus Bank and Baraboo Bancorporation
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Piraeus and Baraboo is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Bank SA and Baraboo Bancorp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baraboo Bancorporation and Piraeus Bank 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 Bank SA are associated (or correlated) with Baraboo Bancorporation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baraboo Bancorporation has no effect on the direction of Piraeus Bank i.e., Piraeus Bank and Baraboo Bancorporation go up and down completely randomly.
Pair Corralation between Piraeus Bank and Baraboo Bancorporation
Assuming the 90 days horizon Piraeus Bank is expected to generate 3.8 times less return on investment than Baraboo Bancorporation. In addition to that, Piraeus Bank is 1.84 times more volatile than Baraboo Bancorporation. It trades about 0.03 of its total potential returns per unit of risk. Baraboo Bancorporation is currently generating about 0.19 per unit of volatility. If you would invest 313.00 in Baraboo Bancorporation on September 3, 2024 and sell it today you would earn a total of 17.00 from holding Baraboo Bancorporation or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piraeus Bank SA vs. Baraboo Bancorp.
Performance |
| Timeline |
| Piraeus Bank SA |
| Baraboo Bancorporation |
Piraeus Bank and Baraboo Bancorporation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Bank and Baraboo Bancorporation
The main advantage of trading using opposite Piraeus Bank and Baraboo Bancorporation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Bank position performs unexpectedly, Baraboo Bancorporation 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 Baraboo Bancorporation will offset losses from the drop in Baraboo Bancorporation's long position.| Piraeus Bank vs. Bankinter SA ADR | Piraeus Bank vs. JAPAN POST BANK | Piraeus Bank vs. JAPAN POST BANK | Piraeus Bank vs. Eurobank Ergasias Services |
| Baraboo Bancorporation vs. Andover Bancorp | Baraboo Bancorporation vs. Aozora Bank Ltd | Baraboo Bancorporation vs. Israel Discount Bank | Baraboo Bancorporation vs. Schweizerische Nationalbank |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |