Correlation Between Eurobank Ergasias and PT Bank
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and PT Bank 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 PT Bank 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 PT Bank Central, you can compare the effects of market volatilities on Eurobank Ergasias and PT Bank 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 PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and PT Bank.
Diversification Opportunities for Eurobank Ergasias and PT Bank
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eurobank and PBCRF is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias SA and PT Bank Central in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Central 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 PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Central has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and PT Bank go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and PT Bank
Assuming the 90 days horizon Eurobank Ergasias SA is expected to generate 0.57 times more return on investment than PT Bank. However, Eurobank Ergasias SA is 1.76 times less risky than PT Bank. It trades about 0.05 of its potential returns per unit of risk. PT Bank Central is currently generating about 0.02 per unit of risk. If you would invest 73.00 in Eurobank Ergasias SA on August 30, 2024 and sell it today you would earn a total of 33.00 from holding Eurobank Ergasias SA or generate 45.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.97% |
| Values | Daily Returns |
Eurobank Ergasias SA vs. PT Bank Central
Performance |
| Timeline |
| Eurobank Ergasias |
| PT Bank Central |
Eurobank Ergasias and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and PT Bank
The main advantage of trading using opposite Eurobank Ergasias and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank's 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 |
| PT Bank vs. Commercial International Bank | PT Bank vs. Caixabank SA ADR | PT Bank vs. Bank Rakyat | PT Bank vs. Lloyds Banking Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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