Correlation Between Eurobank Ergasias and E Pairis
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and E Pairis 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 E Pairis 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 E Pairis SA, you can compare the effects of market volatilities on Eurobank Ergasias and E Pairis 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 E Pairis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and E Pairis.
Diversification Opportunities for Eurobank Ergasias and E Pairis
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eurobank and PAIR is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and E Pairis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Pairis SA 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 E Pairis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Pairis SA has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and E Pairis go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and E Pairis
Assuming the 90 days trading horizon Eurobank Ergasias Services is expected to generate 0.4 times more return on investment than E Pairis. However, Eurobank Ergasias Services is 2.53 times less risky than E Pairis. It trades about 0.25 of its potential returns per unit of risk. E Pairis SA is currently generating about 0.0 per unit of risk. If you would invest 193.00 in Eurobank Ergasias Services on August 29, 2024 and sell it today you would earn a total of 13.00 from holding Eurobank Ergasias Services or generate 6.74% 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. E Pairis SA
Performance |
| Timeline |
| Eurobank Ergasias |
| E Pairis SA |
Eurobank Ergasias and E Pairis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and E Pairis
The main advantage of trading using opposite Eurobank Ergasias and E Pairis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, E Pairis 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 E Pairis will offset losses from the drop in E Pairis' 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 |
| E Pairis vs. Hellenic Telecommunications Organization | E Pairis vs. Technical Olympic SA | E Pairis vs. Optima bank SA | E Pairis vs. Marfin Investment Group |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |