Correlation Between Eurobank Ergasias and Jumbo SA
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and Jumbo SA 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 Jumbo SA 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 Jumbo SA, you can compare the effects of market volatilities on Eurobank Ergasias and Jumbo SA 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 Jumbo SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and Jumbo SA.
Diversification Opportunities for Eurobank Ergasias and Jumbo SA
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eurobank and Jumbo is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and Jumbo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jumbo SA 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 Jumbo SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jumbo SA has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and Jumbo SA go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and Jumbo SA
Assuming the 90 days trading horizon Eurobank Ergasias Services is expected to generate 1.01 times more return on investment than Jumbo SA. However, Eurobank Ergasias is 1.01 times more volatile than Jumbo SA. It trades about 0.08 of its potential returns per unit of risk. Jumbo SA is currently generating about 0.04 per unit of risk. If you would invest 118.00 in Eurobank Ergasias Services on August 24, 2024 and sell it today you would earn a total of 86.00 from holding Eurobank Ergasias Services or generate 72.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eurobank Ergasias Services vs. Jumbo SA
Performance |
| Timeline |
| Eurobank Ergasias |
| Jumbo SA |
Eurobank Ergasias and Jumbo SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and Jumbo SA
The main advantage of trading using opposite Eurobank Ergasias and Jumbo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, Jumbo SA 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 Jumbo SA will offset losses from the drop in Jumbo SA's long position.| Eurobank Ergasias vs. Bank of Greece | Eurobank Ergasias vs. Attica Bank SA | Eurobank Ergasias vs. National Bank of | Eurobank Ergasias vs. EL D Mouzakis |
| Jumbo SA vs. Greek Organization of | Jumbo SA vs. Mytilineos SA | Jumbo SA vs. Motor Oil Corinth | Jumbo SA vs. Hellenic Telecommunications Organization |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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