Correlation Between Piraeus Bank and Commerzbank
Can any of the company-specific risk be diversified away by investing in both Piraeus Bank and Commerzbank 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 Commerzbank 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 Commerzbank AG, you can compare the effects of market volatilities on Piraeus Bank and Commerzbank 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 Commerzbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Bank and Commerzbank.
Diversification Opportunities for Piraeus Bank and Commerzbank
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Piraeus and Commerzbank is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Bank SA and Commerzbank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commerzbank AG 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 Commerzbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commerzbank AG has no effect on the direction of Piraeus Bank i.e., Piraeus Bank and Commerzbank go up and down completely randomly.
Pair Corralation between Piraeus Bank and Commerzbank
Assuming the 90 days horizon Piraeus Bank SA is expected to generate 1.37 times more return on investment than Commerzbank. However, Piraeus Bank is 1.37 times more volatile than Commerzbank AG. It trades about 0.07 of its potential returns per unit of risk. Commerzbank AG is currently generating about 0.07 per unit of risk. If you would invest 133.00 in Piraeus Bank SA on September 3, 2024 and sell it today you would earn a total of 239.00 from holding Piraeus Bank SA or generate 179.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 69.7% |
| Values | Daily Returns |
Piraeus Bank SA vs. Commerzbank AG
Performance |
| Timeline |
| Piraeus Bank SA |
| Commerzbank AG |
Piraeus Bank and Commerzbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Bank and Commerzbank
The main advantage of trading using opposite Piraeus Bank and Commerzbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Bank position performs unexpectedly, Commerzbank 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 Commerzbank will offset losses from the drop in Commerzbank'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 |
| Commerzbank vs. First Hawaiian | Commerzbank vs. Central Pacific Financial | Commerzbank vs. Territorial Bancorp | Commerzbank vs. Comerica |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |