Correlation Between Piraeus Bank and United Bankshares
Can any of the company-specific risk be diversified away by investing in both Piraeus Bank and United Bankshares 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 Bankshares 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 Bankshares, you can compare the effects of market volatilities on Piraeus Bank and United Bankshares 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 Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Bank and United Bankshares.
Diversification Opportunities for Piraeus Bank and United Bankshares
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Piraeus and United is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Bank SA and United Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Bankshares 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 Bankshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Bankshares has no effect on the direction of Piraeus Bank i.e., Piraeus Bank and United Bankshares go up and down completely randomly.
Pair Corralation between Piraeus Bank and United Bankshares
Assuming the 90 days horizon Piraeus Bank SA is expected to generate 2.11 times more return on investment than United Bankshares. However, Piraeus Bank is 2.11 times more volatile than United Bankshares. It trades about 0.06 of its potential returns per unit of risk. United Bankshares is currently generating about 0.01 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 Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piraeus Bank SA vs. United Bankshares
Performance |
| Timeline |
| Piraeus Bank SA |
| United Bankshares |
Piraeus Bank and United Bankshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Bank and United Bankshares
The main advantage of trading using opposite Piraeus Bank and United Bankshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Bank position performs unexpectedly, United Bankshares 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 Bankshares will offset losses from the drop in United Bankshares' 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 |
| United Bankshares vs. Peoples Bancorp | United Bankshares vs. Eagle Bancorp | United Bankshares vs. Northrim BanCorp | United Bankshares vs. Pacific Premier Bancorp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |