Correlation Between Eurobank Ergasias and Savi Financial
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and Savi Financial 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 Savi Financial 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 Savi Financial, you can compare the effects of market volatilities on Eurobank Ergasias and Savi Financial 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 Savi Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and Savi Financial.
Diversification Opportunities for Eurobank Ergasias and Savi Financial
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eurobank and Savi is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and Savi Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Savi Financial 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 Savi Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Savi Financial has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and Savi Financial go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and Savi Financial
Assuming the 90 days horizon Eurobank Ergasias Services is expected to generate 21.46 times more return on investment than Savi Financial. However, Eurobank Ergasias is 21.46 times more volatile than Savi Financial. It trades about 0.32 of its potential returns per unit of risk. Savi Financial is currently generating about 0.0 per unit of risk. If you would invest 209.00 in Eurobank Ergasias Services on October 25, 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eurobank Ergasias Services vs. Savi Financial
Performance |
| Timeline |
| Eurobank Ergasias |
| Savi Financial |
Eurobank Ergasias and Savi Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and Savi Financial
The main advantage of trading using opposite Eurobank Ergasias and Savi Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, Savi Financial 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 Savi Financial will offset losses from the drop in Savi Financial's long position.| Eurobank Ergasias vs. Omni Health | Eurobank Ergasias vs. BioNTech SE | Eurobank Ergasias vs. Sellas Life Sciences | Eurobank Ergasias vs. Bank of New |
| Savi Financial vs. Summit Bank Group | Savi Financial vs. Pacific West Bancorp | Savi Financial vs. Commencement Bancorp | Savi Financial vs. MNB Holdings Corp |
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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