Correlation Between Eurobank Ergasias and Akbank Turk
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and Akbank Turk 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 Eurobank Ergasias and Akbank Turk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eurobank Ergasias Services and Akbank Turk Anonim, you can compare the effects of market volatilities on Eurobank Ergasias and Akbank Turk 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 Eurobank Ergasias with a short position of Akbank Turk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and Akbank Turk.
Diversification Opportunities for Eurobank Ergasias and Akbank Turk
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eurobank and Akbank is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and Akbank Turk Anonim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akbank Turk Anonim and Eurobank Ergasias 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 Eurobank Ergasias Services are associated (or correlated) with Akbank Turk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akbank Turk Anonim has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and Akbank Turk go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and Akbank Turk
Assuming the 90 days horizon Eurobank Ergasias Services is expected to generate 0.96 times more return on investment than Akbank Turk. However, Eurobank Ergasias Services is 1.04 times less risky than Akbank Turk. It trades about 0.07 of its potential returns per unit of risk. Akbank Turk Anonim is currently generating about 0.06 per unit of risk. If you would invest 101.00 in Eurobank Ergasias Services on September 3, 2024 and sell it today you would earn a total of 108.00 from holding Eurobank Ergasias Services or generate 106.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 66.8% |
| Values | Daily Returns |
Eurobank Ergasias Services vs. Akbank Turk Anonim
Performance |
| Timeline |
| Eurobank Ergasias |
| Akbank Turk Anonim |
Eurobank Ergasias and Akbank Turk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and Akbank Turk
The main advantage of trading using opposite Eurobank Ergasias and Akbank Turk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, Akbank Turk 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 Akbank Turk will offset losses from the drop in Akbank Turk's long position.| Eurobank Ergasias vs. First Hawaiian | Eurobank Ergasias vs. Central Pacific Financial | Eurobank Ergasias vs. Territorial Bancorp | Eurobank Ergasias vs. Comerica |
| Akbank Turk vs. Commercial International Bank | Akbank Turk vs. Kasikornbank Public Co | Akbank Turk vs. PT Bank Central | Akbank Turk vs. PT Bank Rakyat |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |