Correlation Between Eurobank Ergasias and Standard Bank
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and Standard 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 Standard 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 Standard Bank Group, you can compare the effects of market volatilities on Eurobank Ergasias and Standard 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 Standard Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and Standard Bank.
Diversification Opportunities for Eurobank Ergasias and Standard Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eurobank and Standard is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias SA and Standard Bank Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Bank Group 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 Standard Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Bank Group has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and Standard Bank go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and Standard Bank
Assuming the 90 days horizon Eurobank Ergasias SA is expected to generate 1.56 times more return on investment than Standard Bank. However, Eurobank Ergasias is 1.56 times more volatile than Standard Bank Group. It trades about 0.13 of its potential returns per unit of risk. Standard Bank Group is currently generating about -0.04 per unit of risk. If you would invest 100.00 in Eurobank Ergasias SA on August 30, 2024 and sell it today you would earn a total of 6.00 from holding Eurobank Ergasias SA or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eurobank Ergasias SA vs. Standard Bank Group
Performance |
| Timeline |
| Eurobank Ergasias |
| Standard Bank Group |
Eurobank Ergasias and Standard Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and Standard Bank
The main advantage of trading using opposite Eurobank Ergasias and Standard Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, Standard 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 Standard Bank will offset losses from the drop in Standard 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 |
| Standard Bank vs. Bank Central Asia | Standard Bank vs. Nedbank Group | Standard Bank vs. Kasikornbank Public Co | Standard Bank vs. KBC Groep NV |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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