Correlation Between Cairo Mezz and Eurobank Ergasias
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By analyzing existing cross correlation between Cairo Mezz PLC and Eurobank Ergasias Services, you can compare the effects of market volatilities on Cairo Mezz and Eurobank Ergasias 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 Cairo Mezz with a short position of Eurobank Ergasias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cairo Mezz and Eurobank Ergasias.
Diversification Opportunities for Cairo Mezz and Eurobank Ergasias
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cairo and Eurobank is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Cairo Mezz PLC and Eurobank Ergasias Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobank Ergasias and Cairo Mezz 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 Cairo Mezz PLC are associated (or correlated) with Eurobank Ergasias. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eurobank Ergasias has no effect on the direction of Cairo Mezz i.e., Cairo Mezz and Eurobank Ergasias go up and down completely randomly.
Pair Corralation between Cairo Mezz and Eurobank Ergasias
Assuming the 90 days trading horizon Cairo Mezz PLC is expected to under-perform the Eurobank Ergasias. In addition to that, Cairo Mezz is 2.1 times more volatile than Eurobank Ergasias Services. It trades about -0.13 of its total potential returns per unit of risk. Eurobank Ergasias Services is currently generating about 0.26 per unit of volatility. If you would invest 189.00 in Eurobank Ergasias Services on August 24, 2024 and sell it today you would earn a total of 15.00 from holding Eurobank Ergasias Services or generate 7.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cairo Mezz PLC vs. Eurobank Ergasias Services
Performance |
| Timeline |
| Cairo Mezz PLC |
| Eurobank Ergasias |
Cairo Mezz and Eurobank Ergasias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cairo Mezz and Eurobank Ergasias
The main advantage of trading using opposite Cairo Mezz and Eurobank Ergasias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cairo Mezz position performs unexpectedly, Eurobank Ergasias 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 Eurobank Ergasias will offset losses from the drop in Eurobank Ergasias' long position.| Cairo Mezz vs. Eurobank Ergasias Services | Cairo Mezz vs. Public Power | Cairo Mezz vs. Alpha Services and | Cairo Mezz vs. Mytilineos SA |
| Eurobank Ergasias vs. Bank of Greece | Eurobank Ergasias vs. Attica Bank SA | Eurobank Ergasias vs. National Bank of | Eurobank Ergasias vs. EL D Mouzakis |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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