Correlation Between Eurobank Ergasias and Commercial International
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and Commercial International 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 Commercial International 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 Commercial International Bank, you can compare the effects of market volatilities on Eurobank Ergasias and Commercial International 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 Commercial International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and Commercial International.
Diversification Opportunities for Eurobank Ergasias and Commercial International
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eurobank and Commercial is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and Commercial International Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commercial International 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 Commercial International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commercial International has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and Commercial International go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and Commercial International
Assuming the 90 days horizon Eurobank Ergasias Services is expected to generate 1.57 times more return on investment than Commercial International. However, Eurobank Ergasias is 1.57 times more volatile than Commercial International Bank. It trades about 0.32 of its potential returns per unit of risk. Commercial International Bank is currently generating about -0.07 per unit of risk. 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 |
Eurobank Ergasias Services vs. Commercial International Bank
Performance |
| Timeline |
| Eurobank Ergasias |
| Commercial International |
Eurobank Ergasias and Commercial International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and Commercial International
The main advantage of trading using opposite Eurobank Ergasias and Commercial International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, Commercial International 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 Commercial International will offset losses from the drop in Commercial International's long position.| Eurobank Ergasias vs. Omni Health | Eurobank Ergasias vs. BioNTech SE | Eurobank Ergasias vs. Sellas Life Sciences | Eurobank Ergasias vs. Bank of New |
| Commercial International vs. Bank Mandiri Persero | Commercial International vs. Turkiye Garanti Bankasi | Commercial International vs. BOC Hong Kong | Commercial International vs. Hang Seng Bank |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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