Correlation Between Eurobank Ergasias and First Citizens
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and First Citizens 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 First Citizens 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 First Citizens BancShares, you can compare the effects of market volatilities on Eurobank Ergasias and First Citizens 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 First Citizens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and First Citizens.
Diversification Opportunities for Eurobank Ergasias and First Citizens
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eurobank and First is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias SA and First Citizens BancShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Citizens BancShares 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 First Citizens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Citizens BancShares has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and First Citizens go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and First Citizens
Assuming the 90 days horizon Eurobank Ergasias SA is expected to generate 3.29 times more return on investment than First Citizens. However, Eurobank Ergasias is 3.29 times more volatile than First Citizens BancShares. It trades about 0.1 of its potential returns per unit of risk. First Citizens BancShares is currently generating about 0.21 per unit of risk. If you would invest 116.00 in Eurobank Ergasias SA on October 24, 2024 and sell it today you would earn a total of 7.00 from holding Eurobank Ergasias SA or generate 6.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eurobank Ergasias SA vs. First Citizens BancShares
Performance |
| Timeline |
| Eurobank Ergasias |
| First Citizens BancShares |
Eurobank Ergasias and First Citizens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and First Citizens
The main advantage of trading using opposite Eurobank Ergasias and First Citizens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, First Citizens 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 First Citizens will offset losses from the drop in First Citizens' long position.| Eurobank Ergasias vs. National Bank of | Eurobank Ergasias vs. Piraeus Bank SA | Eurobank Ergasias vs. Alpha Bank SA | Eurobank Ergasias vs. First Citizens BancShares |
| First Citizens vs. Zions Bancorporation | First Citizens vs. KeyCorp | First Citizens vs. Comerica | First Citizens vs. First Horizon National |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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