Correlation Between Eurobank Ergasias and Harbor Bankshares
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and Harbor Bankshares 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 Harbor Bankshares 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 Harbor Bankshares, you can compare the effects of market volatilities on Eurobank Ergasias and Harbor Bankshares 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 Harbor Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and Harbor Bankshares.
Diversification Opportunities for Eurobank Ergasias and Harbor Bankshares
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eurobank and Harbor is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and Harbor Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Bankshares 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 Harbor Bankshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Bankshares has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and Harbor Bankshares go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and Harbor Bankshares
Assuming the 90 days horizon Eurobank Ergasias Services is expected to generate 1.06 times more return on investment than Harbor Bankshares. However, Eurobank Ergasias is 1.06 times more volatile than Harbor Bankshares. It trades about 0.08 of its potential returns per unit of risk. Harbor Bankshares is currently generating about 0.08 per unit of risk. If you would invest 141.00 in Eurobank Ergasias Services on September 2, 2024 and sell it today you would earn a total of 68.00 from holding Eurobank Ergasias Services or generate 48.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 79.9% |
| Values | Daily Returns |
Eurobank Ergasias Services vs. Harbor Bankshares
Performance |
| Timeline |
| Eurobank Ergasias |
| Harbor Bankshares |
Eurobank Ergasias and Harbor Bankshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and Harbor Bankshares
The main advantage of trading using opposite Eurobank Ergasias and Harbor Bankshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, Harbor Bankshares 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 Harbor Bankshares will offset losses from the drop in Harbor Bankshares' long position.| Eurobank Ergasias vs. FiscalNote Holdings | Eurobank Ergasias vs. Rumble Inc | Eurobank Ergasias vs. Getty Images Holdings | Eurobank Ergasias vs. Definitive Healthcare Corp |
| Harbor Bankshares vs. Piraeus Bank SA | Harbor Bankshares vs. Turkiye Garanti Bankasi | Harbor Bankshares vs. Uwharrie Capital Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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