Correlation Between Piraeus Bank and United Bancorp

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Piraeus Bank and United Bancorp 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 United Bancorp 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 United Bancorp, you can compare the effects of market volatilities on Piraeus Bank and United Bancorp 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 United Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Bank and United Bancorp.

Diversification Opportunities for Piraeus Bank and United Bancorp

0.25
  Correlation Coefficient

Modest diversification

The 3 months correlation between Piraeus and United is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Bank SA and United Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Bancorp 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 United Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Bancorp has no effect on the direction of Piraeus Bank i.e., Piraeus Bank and United Bancorp go up and down completely randomly.

Pair Corralation between Piraeus Bank and United Bancorp

Assuming the 90 days horizon Piraeus Bank SA is expected to generate 1.72 times more return on investment than United Bancorp. However, Piraeus Bank is 1.72 times more volatile than United Bancorp. It trades about 0.06 of its potential returns per unit of risk. United Bancorp is currently generating about 0.02 per unit of risk. If you would invest  187.00  in Piraeus Bank SA on October 14, 2024 and sell it today you would earn a total of  255.00  from holding Piraeus Bank SA or generate 136.36% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Piraeus Bank SA  vs.  United Bancorp

 Performance 
       Timeline  
Piraeus Bank SA 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Piraeus Bank SA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Piraeus Bank showed solid returns over the last few months and may actually be approaching a breakup point.
United Bancorp 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in United Bancorp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental indicators, United Bancorp is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Piraeus Bank and United Bancorp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Piraeus Bank and United Bancorp

The main advantage of trading using opposite Piraeus Bank and United Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Bank position performs unexpectedly, United Bancorp 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 United Bancorp will offset losses from the drop in United Bancorp's long position.
The idea behind Piraeus Bank SA and United Bancorp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Other Complementary Tools

Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation