Correlation Between Eurobank Ergasias and Optronics Technologies
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and Optronics Technologies 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 Optronics Technologies 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 Optronics Technologies SA, you can compare the effects of market volatilities on Eurobank Ergasias and Optronics Technologies 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 Optronics Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and Optronics Technologies.
Diversification Opportunities for Eurobank Ergasias and Optronics Technologies
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eurobank and Optronics is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and Optronics Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Optronics Technologies 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 Optronics Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Optronics Technologies has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and Optronics Technologies go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and Optronics Technologies
If you would invest 193.00 in Eurobank Ergasias Services on August 27, 2024 and sell it today you would earn a total of 12.00 from holding Eurobank Ergasias Services or generate 6.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eurobank Ergasias Services vs. Optronics Technologies SA
Performance |
| Timeline |
| Eurobank Ergasias |
| Optronics Technologies |
Eurobank Ergasias and Optronics Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and Optronics Technologies
The main advantage of trading using opposite Eurobank Ergasias and Optronics Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, Optronics Technologies 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 Optronics Technologies will offset losses from the drop in Optronics Technologies' long position.| Eurobank Ergasias vs. National Bank of | Eurobank Ergasias vs. EL D Mouzakis | Eurobank Ergasias vs. Lampsa Hellenic Hotels | Eurobank Ergasias vs. Alpha Trust Mutual |
| Optronics Technologies vs. Mytilineos SA | Optronics Technologies vs. Motor Oil Corinth | Optronics Technologies vs. Hellenic Petroleum SA | Optronics Technologies vs. National Bank of |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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