Correlation Between Eurobank Ergasias and SunOpta
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and SunOpta 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 SunOpta 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 SunOpta, you can compare the effects of market volatilities on Eurobank Ergasias and SunOpta 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 SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and SunOpta.
Diversification Opportunities for Eurobank Ergasias and SunOpta
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eurobank and SunOpta is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta 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 SunOpta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunOpta has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and SunOpta go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and SunOpta
Assuming the 90 days horizon Eurobank Ergasias Services is expected to under-perform the SunOpta. But the pink sheet apears to be less risky and, when comparing its historical volatility, Eurobank Ergasias Services is 4.47 times less risky than SunOpta. The pink sheet trades about -0.17 of its potential returns per unit of risk. The SunOpta is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 598.00 in SunOpta on August 29, 2024 and sell it today you would earn a total of 181.00 from holding SunOpta or generate 30.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eurobank Ergasias Services vs. SunOpta
Performance |
| Timeline |
| Eurobank Ergasias |
| SunOpta |
Eurobank Ergasias and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and SunOpta
The main advantage of trading using opposite Eurobank Ergasias and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, SunOpta 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 SunOpta will offset losses from the drop in SunOpta's long position.The idea behind Eurobank Ergasias Services and SunOpta pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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