Correlation Between Eurobank Ergasias and SVB T
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and SVB T 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 SVB T 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 SVB T Corp, you can compare the effects of market volatilities on Eurobank Ergasias and SVB T 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 SVB T. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and SVB T.
Diversification Opportunities for Eurobank Ergasias and SVB T
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eurobank and SVB is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and SVB T Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVB T Corp 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 SVB T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVB T Corp has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and SVB T go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and SVB T
Assuming the 90 days horizon Eurobank Ergasias Services is expected to generate 8.4 times more return on investment than SVB T. However, Eurobank Ergasias is 8.4 times more volatile than SVB T Corp. It trades about 0.39 of its potential returns per unit of risk. SVB T Corp is currently generating about 0.3 per unit of risk. If you would invest 209.00 in Eurobank Ergasias Services on October 27, 2024 and sell it today you would earn a total of 58.00 from holding Eurobank Ergasias Services or generate 27.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eurobank Ergasias Services vs. SVB T Corp
Performance |
| Timeline |
| Eurobank Ergasias |
| SVB T Corp |
Eurobank Ergasias and SVB T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and SVB T
The main advantage of trading using opposite Eurobank Ergasias and SVB T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, SVB T 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 SVB T will offset losses from the drop in SVB T's long position.| Eurobank Ergasias vs. Weyco Group | Eurobank Ergasias vs. Olympic Steel | Eurobank Ergasias vs. The Gap, | Eurobank Ergasias vs. Analog Devices |
| SVB T vs. Katahdin Bankshares Corp | SVB T vs. Marquette National Corp | SVB T vs. United Bancorporation of | SVB T vs. Fentura Financial |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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