Correlation Between Eurobank Ergasias and Partners Bank
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and Partners Bank 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 Partners Bank 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 Partners Bank of, you can compare the effects of market volatilities on Eurobank Ergasias and Partners Bank 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 Partners Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and Partners Bank.
Diversification Opportunities for Eurobank Ergasias and Partners Bank
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eurobank and Partners is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and Partners Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Partners Bank 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 Partners Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Partners Bank has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and Partners Bank go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and Partners Bank
Assuming the 90 days horizon Eurobank Ergasias Services is expected to generate 3.56 times more return on investment than Partners Bank. However, Eurobank Ergasias is 3.56 times more volatile than Partners Bank of. It trades about 0.13 of its potential returns per unit of risk. Partners Bank of is currently generating about 0.0 per unit of risk. If you would invest 117.00 in Eurobank Ergasias Services on January 17, 2025 and sell it today you would earn a total of 158.00 from holding Eurobank Ergasias Services or generate 135.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 26.92% |
| Values | Daily Returns |
Eurobank Ergasias Services vs. Partners Bank of
Performance |
| Timeline |
| Eurobank Ergasias |
| Partners Bank |
Eurobank Ergasias and Partners Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and Partners Bank
The main advantage of trading using opposite Eurobank Ergasias and Partners Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, Partners Bank 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 Partners Bank will offset losses from the drop in Partners Bank's long position.| Eurobank Ergasias vs. Alaska Air Group | Eurobank Ergasias vs. The Bank of | Eurobank Ergasias vs. Royalty Management Holding | Eurobank Ergasias vs. Stepstone Group |
| Partners Bank vs. Bangkok Bank PCL | Partners Bank vs. BOC Hong Kong | Partners Bank vs. China Merchants Bank | Partners Bank vs. Magyar Bancorp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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