Correlation Between Caixabank and Eurobank Ergasias
Can any of the company-specific risk be diversified away by investing in both Caixabank and Eurobank Ergasias 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 Caixabank and Eurobank Ergasias into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caixabank SA ADR and Eurobank Ergasias Services, you can compare the effects of market volatilities on Caixabank 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 Caixabank with a short position of Eurobank Ergasias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caixabank and Eurobank Ergasias.
Diversification Opportunities for Caixabank and Eurobank Ergasias
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Caixabank and Eurobank is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Caixabank SA ADR and Eurobank Ergasias Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobank Ergasias and Caixabank 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 Caixabank SA ADR 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 Caixabank i.e., Caixabank and Eurobank Ergasias go up and down completely randomly.
Pair Corralation between Caixabank and Eurobank Ergasias
Assuming the 90 days horizon Caixabank is expected to generate 1.39 times less return on investment than Eurobank Ergasias. But when comparing it to its historical volatility, Caixabank SA ADR is 1.33 times less risky than Eurobank Ergasias. It trades about 0.29 of its potential returns per unit of risk. Eurobank Ergasias Services is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 224.00 in Eurobank Ergasias Services on November 3, 2024 and sell it today you would earn a total of 43.00 from holding Eurobank Ergasias Services or generate 19.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Caixabank SA ADR vs. Eurobank Ergasias Services
Performance |
| Timeline |
| Caixabank SA ADR |
| Eurobank Ergasias |
Caixabank and Eurobank Ergasias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caixabank and Eurobank Ergasias
The main advantage of trading using opposite Caixabank and Eurobank Ergasias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caixabank 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.| Caixabank vs. Permanent TSB Group | Caixabank vs. Bank of Botetourt | Caixabank vs. Cashmere Valley Bank | Caixabank vs. Oak Valley Bancorp |
| Eurobank Ergasias vs. Dave Busters Entertainment | Eurobank Ergasias vs. Park Electrochemical | Eurobank Ergasias vs. Purecycle Technologies Holdings | Eurobank Ergasias vs. Sealed Air |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |