Correlation Between Eurobank Ergasias and Technical Olympic
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and Technical Olympic 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 Technical Olympic 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 Technical Olympic SA, you can compare the effects of market volatilities on Eurobank Ergasias and Technical Olympic 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 Technical Olympic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and Technical Olympic.
Diversification Opportunities for Eurobank Ergasias and Technical Olympic
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eurobank and Technical is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and Technical Olympic SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Technical Olympic 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 Technical Olympic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Technical Olympic has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and Technical Olympic go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and Technical Olympic
Assuming the 90 days trading horizon Eurobank Ergasias Services is expected to generate 1.36 times more return on investment than Technical Olympic. However, Eurobank Ergasias is 1.36 times more volatile than Technical Olympic SA. It trades about 0.18 of its potential returns per unit of risk. Technical Olympic SA is currently generating about 0.22 per unit of risk. If you would invest 228.00 in Eurobank Ergasias Services on November 4, 2024 and sell it today you would earn a total of 14.00 from holding Eurobank Ergasias Services or generate 6.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eurobank Ergasias Services vs. Technical Olympic SA
Performance |
| Timeline |
| Eurobank Ergasias |
| Technical Olympic |
Eurobank Ergasias and Technical Olympic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and Technical Olympic
The main advantage of trading using opposite Eurobank Ergasias and Technical Olympic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, Technical Olympic 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 Technical Olympic will offset losses from the drop in Technical Olympic'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 |
| Technical Olympic vs. As Commercial Industrial | Technical Olympic vs. Bank of Greece | Technical Olympic vs. Daios Plastics SA | Technical Olympic vs. Foodlink AE |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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