Correlation Between Eurobank Ergasias and Greek Organization
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and Greek Organization 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 Greek Organization 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 Greek Organization of, you can compare the effects of market volatilities on Eurobank Ergasias and Greek Organization 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 Greek Organization. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and Greek Organization.
Diversification Opportunities for Eurobank Ergasias and Greek Organization
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eurobank and Greek is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and Greek Organization of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greek Organization 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 Greek Organization. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greek Organization has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and Greek Organization go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and Greek Organization
Assuming the 90 days trading horizon Eurobank Ergasias Services is expected to generate 1.5 times more return on investment than Greek Organization. However, Eurobank Ergasias is 1.5 times more volatile than Greek Organization of. It trades about 0.08 of its potential returns per unit of risk. Greek Organization of is currently generating about 0.06 per unit of risk. If you would invest 130.00 in Eurobank Ergasias Services on November 5, 2024 and sell it today you would earn a total of 112.00 from holding Eurobank Ergasias Services or generate 86.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eurobank Ergasias Services vs. Greek Organization of
Performance |
| Timeline |
| Eurobank Ergasias |
| Greek Organization |
Eurobank Ergasias and Greek Organization Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and Greek Organization
The main advantage of trading using opposite Eurobank Ergasias and Greek Organization positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, Greek Organization 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 Greek Organization will offset losses from the drop in Greek Organization'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 |
| Greek Organization vs. Mytilineos SA | Greek Organization vs. Hellenic Telecommunications Organization | Greek Organization vs. Motor Oil Corinth | Greek Organization vs. Alpha Services and |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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