Correlation Between Eurobank Ergasias and Bioter SA
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and Bioter 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 Bioter 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 Bioter SA, you can compare the effects of market volatilities on Eurobank Ergasias and Bioter 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 Bioter SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and Bioter SA.
Diversification Opportunities for Eurobank Ergasias and Bioter SA
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eurobank and Bioter is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and Bioter SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bioter 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 Bioter SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bioter SA has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and Bioter SA go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and Bioter SA
Assuming the 90 days trading horizon Eurobank Ergasias Services is expected to generate 0.39 times more return on investment than Bioter SA. However, Eurobank Ergasias Services is 2.58 times less risky than Bioter SA. It trades about 0.14 of its potential returns per unit of risk. Bioter SA is currently generating about 0.0 per unit of risk. If you would invest 201.00 in Eurobank Ergasias Services on September 19, 2024 and sell it today you would earn a total of 18.00 from holding Eurobank Ergasias Services or generate 8.96% 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. Bioter SA
Performance |
| Timeline |
| Eurobank Ergasias |
| Bioter SA |
Eurobank Ergasias and Bioter SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and Bioter SA
The main advantage of trading using opposite Eurobank Ergasias and Bioter SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, Bioter 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 Bioter SA will offset losses from the drop in Bioter SA's long position.| Eurobank Ergasias vs. Alpha Services and | Eurobank Ergasias vs. Piraeus Financial Holdings | Eurobank Ergasias vs. National Bank of | Eurobank Ergasias vs. Greek Organization of |
| Bioter SA vs. GEK TERNA Holdings | Bioter SA vs. Avax SA | Bioter SA vs. Technical Olympic SA | Bioter SA vs. Ekter SA |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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