Correlation Between Piraeus Bank and PSB Holdings
Can any of the company-specific risk be diversified away by investing in both Piraeus Bank and PSB Holdings 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 PSB Holdings 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 PSB Holdings, you can compare the effects of market volatilities on Piraeus Bank and PSB Holdings 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 PSB Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Bank and PSB Holdings.
Diversification Opportunities for Piraeus Bank and PSB Holdings
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Piraeus and PSB is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Bank SA and PSB Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PSB Holdings 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 PSB Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PSB Holdings has no effect on the direction of Piraeus Bank i.e., Piraeus Bank and PSB Holdings go up and down completely randomly.
Pair Corralation between Piraeus Bank and PSB Holdings
Assuming the 90 days horizon Piraeus Bank SA is expected to under-perform the PSB Holdings. In addition to that, Piraeus Bank is 2.38 times more volatile than PSB Holdings. It trades about 0.0 of its total potential returns per unit of risk. PSB Holdings is currently generating about 0.3 per unit of volatility. If you would invest 2,600 in PSB Holdings on August 30, 2024 and sell it today you would earn a total of 190.00 from holding PSB Holdings or generate 7.31% 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. PSB Holdings
Performance |
| Timeline |
| Piraeus Bank SA |
| PSB Holdings |
Piraeus Bank and PSB Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Bank and PSB Holdings
The main advantage of trading using opposite Piraeus Bank and PSB Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Bank position performs unexpectedly, PSB Holdings 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 PSB Holdings will offset losses from the drop in PSB Holdings' 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 |
| PSB Holdings vs. Eagle Financial Services | PSB Holdings vs. National Capital Bank | PSB Holdings vs. Community Heritage Financial | PSB Holdings vs. Citizens Financial Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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