Correlation Between Eurobank Ergasias and Interwood Xylemporia
Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and Interwood Xylemporia 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 Interwood Xylemporia 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 Interwood Xylemporia ATENE, you can compare the effects of market volatilities on Eurobank Ergasias and Interwood Xylemporia 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 Interwood Xylemporia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and Interwood Xylemporia.
Diversification Opportunities for Eurobank Ergasias and Interwood Xylemporia
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eurobank and Interwood is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and Interwood Xylemporia ATENE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interwood Xylemporia 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 Interwood Xylemporia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interwood Xylemporia has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and Interwood Xylemporia go up and down completely randomly.
Pair Corralation between Eurobank Ergasias and Interwood Xylemporia
Assuming the 90 days trading horizon Eurobank Ergasias Services is expected to generate 0.6 times more return on investment than Interwood Xylemporia. However, Eurobank Ergasias Services is 1.66 times less risky than Interwood Xylemporia. It trades about 0.08 of its potential returns per unit of risk. Interwood Xylemporia ATENE is currently generating about 0.03 per unit of risk. If you would invest 100.00 in Eurobank Ergasias Services on September 3, 2024 and sell it today you would earn a total of 100.00 from holding Eurobank Ergasias Services or generate 100.0% 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. Interwood Xylemporia ATENE
Performance |
| Timeline |
| Eurobank Ergasias |
| Interwood Xylemporia |
Eurobank Ergasias and Interwood Xylemporia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eurobank Ergasias and Interwood Xylemporia
The main advantage of trading using opposite Eurobank Ergasias and Interwood Xylemporia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, Interwood Xylemporia 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 Interwood Xylemporia will offset losses from the drop in Interwood Xylemporia'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 |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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