Correlation Between Commercial International and Eurobank Ergasias
Can any of the company-specific risk be diversified away by investing in both Commercial International 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 Commercial International and Eurobank Ergasias into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commercial International Bank and Eurobank Ergasias Services, you can compare the effects of market volatilities on Commercial International 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 Commercial International with a short position of Eurobank Ergasias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commercial International and Eurobank Ergasias.
Diversification Opportunities for Commercial International and Eurobank Ergasias
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Commercial and Eurobank is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Commercial International Bank and Eurobank Ergasias Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobank Ergasias and Commercial International 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 Commercial International Bank 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 Commercial International i.e., Commercial International and Eurobank Ergasias go up and down completely randomly.
Pair Corralation between Commercial International and Eurobank Ergasias
Assuming the 90 days horizon Commercial International Bank is expected to under-perform the Eurobank Ergasias. But the otc stock apears to be less risky and, when comparing its historical volatility, Commercial International Bank is 1.57 times less risky than Eurobank Ergasias. The otc stock trades about -0.07 of its potential returns per unit of risk. The Eurobank Ergasias Services is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 209.00 in Eurobank Ergasias Services on October 25, 2024 and sell it today you would earn a total of 30.00 from holding Eurobank Ergasias Services or generate 14.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Commercial International Bank vs. Eurobank Ergasias Services
Performance |
| Timeline |
| Commercial International |
| Eurobank Ergasias |
Commercial International and Eurobank Ergasias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commercial International and Eurobank Ergasias
The main advantage of trading using opposite Commercial International and Eurobank Ergasias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commercial International 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.| Commercial International vs. Bank Mandiri Persero | Commercial International vs. Turkiye Garanti Bankasi | Commercial International vs. BOC Hong Kong | Commercial International vs. Hang Seng Bank |
| Eurobank Ergasias vs. Omni Health | Eurobank Ergasias vs. BioNTech SE | Eurobank Ergasias vs. Sellas Life Sciences | Eurobank Ergasias vs. Bank of New |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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