Correlation Between Eurobank Ergasias and First Horizon
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and First Horizon 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 First Horizon 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 First Horizon National, you can compare the effects of market volatilities on Eurobank Ergasias and First Horizon 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 First Horizon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and First Horizon.
Diversification Opportunities for Eurobank Ergasias and First Horizon
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eurobank and First is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and First Horizon National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Horizon National 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 First Horizon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Horizon National has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and First Horizon go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and First Horizon
Assuming the 90 days horizon Eurobank Ergasias Services is expected to generate 1.79 times more return on investment than First Horizon. However, Eurobank Ergasias is 1.79 times more volatile than First Horizon National. It trades about 0.1 of its potential returns per unit of risk. First Horizon National is currently generating about 0.11 per unit of risk. If you would invest 152.00 in Eurobank Ergasias Services on November 3, 2024 and sell it today you would earn a total of 115.00 from holding Eurobank Ergasias Services or generate 75.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 75.4% |
| Values | Daily Returns |
Eurobank Ergasias Services vs. First Horizon National
Performance |
| Timeline |
| Eurobank Ergasias |
| First Horizon National |
Eurobank Ergasias and First Horizon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and First Horizon
The main advantage of trading using opposite Eurobank Ergasias and First Horizon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, First Horizon 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 First Horizon will offset losses from the drop in First Horizon's long position.| Eurobank Ergasias vs. Uber Technologies | Eurobank Ergasias vs. Glorywin Entertainment Group | Eurobank Ergasias vs. Asure Software | Eurobank Ergasias vs. Sphere Entertainment Co |
| First Horizon vs. KeyCorp | First Horizon vs. Huntington Bancshares Incorporated | First Horizon vs. Comerica | First Horizon vs. Western Alliance Bancorporation |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |