Correlation Between Eurobank Ergasias and Hellenic Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and Hellenic Telecommunicatio 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 Hellenic Telecommunicatio 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 Hellenic Telecommunications Organization, you can compare the effects of market volatilities on Eurobank Ergasias and Hellenic Telecommunicatio 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 Hellenic Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and Hellenic Telecommunicatio.
Diversification Opportunities for Eurobank Ergasias and Hellenic Telecommunicatio
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eurobank and Hellenic is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and Hellenic Telecommunications Or in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hellenic Telecommunicatio 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 Hellenic Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hellenic Telecommunicatio has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and Hellenic Telecommunicatio go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and Hellenic Telecommunicatio
Assuming the 90 days trading horizon Eurobank Ergasias Services is expected to generate 1.39 times more return on investment than Hellenic Telecommunicatio. However, Eurobank Ergasias is 1.39 times more volatile than Hellenic Telecommunications Organization. It trades about 0.43 of its potential returns per unit of risk. Hellenic Telecommunications Organization is currently generating about 0.09 per unit of risk. If you would invest 222.00 in Eurobank Ergasias Services on October 24, 2024 and sell it today you would earn a total of 26.00 from holding Eurobank Ergasias Services or generate 11.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eurobank Ergasias Services vs. Hellenic Telecommunications Or
Performance |
| Timeline |
| Eurobank Ergasias |
| Hellenic Telecommunicatio |
Eurobank Ergasias and Hellenic Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and Hellenic Telecommunicatio
The main advantage of trading using opposite Eurobank Ergasias and Hellenic Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, Hellenic Telecommunicatio 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 Hellenic Telecommunicatio will offset losses from the drop in Hellenic Telecommunicatio'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 |
| Hellenic Telecommunicatio vs. Greek Organization of | Hellenic Telecommunicatio vs. Mytilineos SA | Hellenic Telecommunicatio vs. Public Power | Hellenic Telecommunicatio vs. Motor Oil Corinth |
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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