Correlation Between Eurobank Ergasias and United Overseas
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and United Overseas 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 United Overseas 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 United Overseas Bank, you can compare the effects of market volatilities on Eurobank Ergasias and United Overseas 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 United Overseas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and United Overseas.
Diversification Opportunities for Eurobank Ergasias and United Overseas
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eurobank and United is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and United Overseas Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Overseas 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 United Overseas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Overseas Bank has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and United Overseas go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and United Overseas
Assuming the 90 days horizon Eurobank Ergasias Services is expected to generate 2.37 times more return on investment than United Overseas. However, Eurobank Ergasias is 2.37 times more volatile than United Overseas Bank. It trades about 0.32 of its potential returns per unit of risk. United Overseas Bank is currently generating about 0.14 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. United Overseas Bank
Performance |
| Timeline |
| Eurobank Ergasias |
| United Overseas Bank |
Eurobank Ergasias and United Overseas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and United Overseas
The main advantage of trading using opposite Eurobank Ergasias and United Overseas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, United Overseas 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 United Overseas will offset losses from the drop in United Overseas' long position.| Eurobank Ergasias vs. Omni Health | Eurobank Ergasias vs. BioNTech SE | Eurobank Ergasias vs. Sellas Life Sciences | Eurobank Ergasias vs. Bank of New |
| United Overseas vs. KBC Groep NV | United Overseas vs. DBS Group Holdings | United Overseas vs. HomeStreet | United Overseas vs. Bank of Hawaii |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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