Correlation Between Eurobank Ergasias and Alpha Services
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and Alpha Services 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 Alpha Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eurobank Ergasias SA and Alpha Services And, you can compare the effects of market volatilities on Eurobank Ergasias and Alpha Services 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 Alpha Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and Alpha Services.
Diversification Opportunities for Eurobank Ergasias and Alpha Services
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eurobank and Alpha is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias SA and Alpha Services And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Services And 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 SA are associated (or correlated) with Alpha Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Services And has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and Alpha Services go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and Alpha Services
Assuming the 90 days horizon Eurobank Ergasias SA is expected to generate 1.03 times more return on investment than Alpha Services. However, Eurobank Ergasias is 1.03 times more volatile than Alpha Services And. It trades about 0.05 of its potential returns per unit of risk. Alpha Services And is currently generating about 0.0 per unit of risk. If you would invest 81.00 in Eurobank Ergasias SA on August 26, 2024 and sell it today you would earn a total of 26.00 from holding Eurobank Ergasias SA or generate 32.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 64.26% |
| Values | Daily Returns |
Eurobank Ergasias SA vs. Alpha Services And
Performance |
| Timeline |
| Eurobank Ergasias |
| Alpha Services And |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eurobank Ergasias and Alpha Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and Alpha Services
The main advantage of trading using opposite Eurobank Ergasias and Alpha Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, Alpha Services 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 Alpha Services will offset losses from the drop in Alpha Services' long position.| Eurobank Ergasias vs. Standard Bank Group | Eurobank Ergasias vs. PSB Holdings | Eurobank Ergasias vs. United Overseas Bank | Eurobank Ergasias vs. Turkiye Garanti Bankasi |
| Alpha Services vs. Bankinter SA ADR | Alpha Services vs. CaixaBank SA | Alpha Services vs. First Horizon | Alpha Services vs. JAPAN POST BANK |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |