Correlation Between Eurobank Ergasias and Bank Negara
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and Bank Negara 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 Bank Negara 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 Bank Negara Indonesia, you can compare the effects of market volatilities on Eurobank Ergasias and Bank Negara 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 Bank Negara. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and Bank Negara.
Diversification Opportunities for Eurobank Ergasias and Bank Negara
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eurobank and Bank is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and Bank Negara Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Negara Indonesia 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 Bank Negara. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Negara Indonesia has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and Bank Negara go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and Bank Negara
Assuming the 90 days horizon Eurobank Ergasias Services is expected to generate 0.43 times more return on investment than Bank Negara. However, Eurobank Ergasias Services is 2.31 times less risky than Bank Negara. It trades about 0.32 of its potential returns per unit of risk. Bank Negara Indonesia is currently generating about 0.07 per unit of risk. If you would invest 209.00 in Eurobank Ergasias Services on October 24, 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eurobank Ergasias Services vs. Bank Negara Indonesia
Performance |
| Timeline |
| Eurobank Ergasias |
| Bank Negara Indonesia |
Eurobank Ergasias and Bank Negara Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and Bank Negara
The main advantage of trading using opposite Eurobank Ergasias and Bank Negara positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, Bank Negara 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 Bank Negara will offset losses from the drop in Bank Negara's long position.| Eurobank Ergasias vs. Broadcom | Eurobank Ergasias vs. KLA Tencor | Eurobank Ergasias vs. JD Sports Fashion | Eurobank Ergasias vs. Hollywood Intermediate |
| Bank Negara vs. Banco Bradesco SA | Bank Negara vs. Itau Unibanco Banco | Bank Negara vs. Lloyds Banking Group | Bank Negara vs. Deutsche Bank AG |
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..
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |