Correlation Between Piraeus Bank and Eastern Michigan
Can any of the company-specific risk be diversified away by investing in both Piraeus Bank and Eastern Michigan 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 Eastern Michigan 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 Eastern Michigan Financial, you can compare the effects of market volatilities on Piraeus Bank and Eastern Michigan 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 Eastern Michigan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Bank and Eastern Michigan.
Diversification Opportunities for Piraeus Bank and Eastern Michigan
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Piraeus and Eastern is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Bank SA and Eastern Michigan Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Michigan Fin 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 Eastern Michigan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Michigan Fin has no effect on the direction of Piraeus Bank i.e., Piraeus Bank and Eastern Michigan go up and down completely randomly.
Pair Corralation between Piraeus Bank and Eastern Michigan
Assuming the 90 days horizon Piraeus Bank SA is expected to under-perform the Eastern Michigan. In addition to that, Piraeus Bank is 2.03 times more volatile than Eastern Michigan Financial. It trades about -0.08 of its total potential returns per unit of risk. Eastern Michigan Financial is currently generating about 0.15 per unit of volatility. If you would invest 3,300 in Eastern Michigan Financial on September 3, 2024 and sell it today you would earn a total of 241.00 from holding Eastern Michigan Financial or generate 7.3% 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. Eastern Michigan Financial
Performance |
| Timeline |
| Piraeus Bank SA |
| Eastern Michigan Fin |
Piraeus Bank and Eastern Michigan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Bank and Eastern Michigan
The main advantage of trading using opposite Piraeus Bank and Eastern Michigan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Bank position performs unexpectedly, Eastern Michigan 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 Eastern Michigan will offset losses from the drop in Eastern Michigan'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 |
| Eastern Michigan vs. Commercial National Financial | Eastern Michigan vs. Mifflinburg Bancorp | Eastern Michigan vs. Apollo Bancorp | Eastern Michigan vs. Community Bankers |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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