Correlation Between Piraeus Bank and Two Rivers
Can any of the company-specific risk be diversified away by investing in both Piraeus Bank and Two Rivers 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 Two Rivers 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 Two Rivers Financial, you can compare the effects of market volatilities on Piraeus Bank and Two Rivers 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 Two Rivers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Bank and Two Rivers.
Diversification Opportunities for Piraeus Bank and Two Rivers
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Piraeus and Two is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Bank SA and Two Rivers Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Two Rivers Financial 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 Two Rivers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Two Rivers Financial has no effect on the direction of Piraeus Bank i.e., Piraeus Bank and Two Rivers go up and down completely randomly.
Pair Corralation between Piraeus Bank and Two Rivers
Assuming the 90 days horizon Piraeus Bank SA is expected to generate 3.05 times more return on investment than Two Rivers. However, Piraeus Bank is 3.05 times more volatile than Two Rivers Financial. It trades about 0.07 of its potential returns per unit of risk. Two Rivers Financial is currently generating about -0.02 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 | 89.49% |
| Values | Daily Returns |
Piraeus Bank SA vs. Two Rivers Financial
Performance |
| Timeline |
| Piraeus Bank SA |
| Two Rivers Financial |
Piraeus Bank and Two Rivers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Bank and Two Rivers
The main advantage of trading using opposite Piraeus Bank and Two Rivers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Bank position performs unexpectedly, Two Rivers 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 Two Rivers will offset losses from the drop in Two Rivers' 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 |
| Two Rivers vs. First Capital | Two Rivers vs. Civista Bancshares | Two Rivers vs. Finward Bancorp | Two Rivers vs. Heritage Financial |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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