Correlation Between Piraeus Bank and First Horizon
Can any of the company-specific risk be diversified away by investing in both Piraeus Bank and First Horizon 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 First Horizon 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 First Horizon National, you can compare the effects of market volatilities on Piraeus Bank and First Horizon 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 First Horizon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Bank and First Horizon.
Diversification Opportunities for Piraeus Bank and First Horizon
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Piraeus and First is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Bank SA and First Horizon National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Horizon National 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 First Horizon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Horizon National has no effect on the direction of Piraeus Bank i.e., Piraeus Bank and First Horizon go up and down completely randomly.
Pair Corralation between Piraeus Bank and First Horizon
Assuming the 90 days horizon Piraeus Bank SA is expected to generate 1.4 times more return on investment than First Horizon. However, Piraeus Bank is 1.4 times more volatile than First Horizon National. It trades about 0.25 of its potential returns per unit of risk. First Horizon National is currently generating about 0.07 per unit of risk. If you would invest 368.00 in Piraeus Bank SA on October 23, 2024 and sell it today you would earn a total of 82.00 from holding Piraeus Bank SA or generate 22.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piraeus Bank SA vs. First Horizon National
Performance |
| Timeline |
| Piraeus Bank SA |
| First Horizon National |
Piraeus Bank and First Horizon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Bank and First Horizon
The main advantage of trading using opposite Piraeus Bank and First Horizon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Bank position performs unexpectedly, First Horizon 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 First Horizon will offset losses from the drop in First Horizon'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 |
| First Horizon vs. Zions Bancorporation | First Horizon vs. KeyCorp | First Horizon vs. Comerica | First Horizon vs. Western Alliance Bancorporation |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |