Correlation Between Eurobank Ergasias and Gr Sarantis
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and Gr Sarantis 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 Gr Sarantis 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 Gr Sarantis SA, you can compare the effects of market volatilities on Eurobank Ergasias and Gr Sarantis 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 Gr Sarantis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and Gr Sarantis.
Diversification Opportunities for Eurobank Ergasias and Gr Sarantis
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eurobank and SAR is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and Gr Sarantis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gr Sarantis 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 Gr Sarantis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gr Sarantis SA has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and Gr Sarantis go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and Gr Sarantis
Assuming the 90 days trading horizon Eurobank Ergasias Services is expected to generate 1.03 times more return on investment than Gr Sarantis. However, Eurobank Ergasias is 1.03 times more volatile than Gr Sarantis SA. It trades about 0.07 of its potential returns per unit of risk. Gr Sarantis SA is currently generating about 0.06 per unit of risk. If you would invest 110.00 in Eurobank Ergasias Services on August 31, 2024 and sell it today you would earn a total of 90.00 from holding Eurobank Ergasias Services or generate 81.82% 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. Gr Sarantis SA
Performance |
| Timeline |
| Eurobank Ergasias |
| Gr Sarantis SA |
Eurobank Ergasias and Gr Sarantis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and Gr Sarantis
The main advantage of trading using opposite Eurobank Ergasias and Gr Sarantis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, Gr Sarantis 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 Gr Sarantis will offset losses from the drop in Gr Sarantis' 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 |
| Gr Sarantis vs. Jumbo SA | Gr Sarantis vs. Mytilineos SA | Gr Sarantis vs. Aegean Airlines SA | Gr Sarantis vs. Greek Organization 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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