Correlation Between Eurobank Ergasias and Lampsa Hellenic
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and Lampsa Hellenic 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 Lampsa Hellenic 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 Lampsa Hellenic Hotels, you can compare the effects of market volatilities on Eurobank Ergasias and Lampsa Hellenic 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 Lampsa Hellenic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and Lampsa Hellenic.
Diversification Opportunities for Eurobank Ergasias and Lampsa Hellenic
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eurobank and Lampsa is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and Lampsa Hellenic Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lampsa Hellenic Hotels 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 Lampsa Hellenic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lampsa Hellenic Hotels has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and Lampsa Hellenic go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and Lampsa Hellenic
Assuming the 90 days trading horizon Eurobank Ergasias Services is expected to generate 2.04 times more return on investment than Lampsa Hellenic. However, Eurobank Ergasias is 2.04 times more volatile than Lampsa Hellenic Hotels. It trades about 0.25 of its potential returns per unit of risk. Lampsa Hellenic Hotels is currently generating about -0.01 per unit of risk. If you would invest 205.00 in Eurobank Ergasias Services on October 26, 2024 and sell it today you would earn a total of 34.00 from holding Eurobank Ergasias Services or generate 16.59% 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. Lampsa Hellenic Hotels
Performance |
| Timeline |
| Eurobank Ergasias |
| Lampsa Hellenic Hotels |
Eurobank Ergasias and Lampsa Hellenic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and Lampsa Hellenic
The main advantage of trading using opposite Eurobank Ergasias and Lampsa Hellenic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, Lampsa Hellenic 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 Lampsa Hellenic will offset losses from the drop in Lampsa Hellenic'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 |
| Lampsa Hellenic vs. National Bank of | Lampsa Hellenic vs. N Leventeris SA | Lampsa Hellenic vs. Eurobank Ergasias Services | Lampsa Hellenic vs. Vogiatzoglou Systems 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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