Correlation Between Eurobank Ergasias and Lewis Clark
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and Lewis Clark 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 Lewis Clark 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 Lewis Clark Bancorp, you can compare the effects of market volatilities on Eurobank Ergasias and Lewis Clark 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 Lewis Clark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and Lewis Clark.
Diversification Opportunities for Eurobank Ergasias and Lewis Clark
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eurobank and Lewis is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and Lewis Clark Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lewis Clark Bancorp 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 Lewis Clark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lewis Clark Bancorp has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and Lewis Clark go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and Lewis Clark
Assuming the 90 days horizon Eurobank Ergasias Services is expected to generate 1.67 times more return on investment than Lewis Clark. However, Eurobank Ergasias is 1.67 times more volatile than Lewis Clark Bancorp. It trades about 0.07 of its potential returns per unit of risk. Lewis Clark Bancorp is currently generating about 0.0 per unit of risk. If you would invest 101.00 in Eurobank Ergasias Services on September 2, 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 Against |
| Strength | Significant |
| Accuracy | 85.83% |
| Values | Daily Returns |
Eurobank Ergasias Services vs. Lewis Clark Bancorp
Performance |
| Timeline |
| Eurobank Ergasias |
| Lewis Clark Bancorp |
Eurobank Ergasias and Lewis Clark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and Lewis Clark
The main advantage of trading using opposite Eurobank Ergasias and Lewis Clark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, Lewis Clark 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 Lewis Clark will offset losses from the drop in Lewis Clark's long position.| Eurobank Ergasias vs. FiscalNote Holdings | Eurobank Ergasias vs. Rumble Inc | Eurobank Ergasias vs. Getty Images Holdings | Eurobank Ergasias vs. Definitive Healthcare Corp |
| Lewis Clark vs. China Clean Energy | Lewis Clark vs. Titan Machinery | Lewis Clark vs. Tradeweb Markets | Lewis Clark vs. Simon Property Group |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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