Correlation Between FinecoBank Banca and Alpha Bank
Can any of the company-specific risk be diversified away by investing in both FinecoBank Banca and Alpha Bank 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 FinecoBank Banca and Alpha Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FinecoBank Banca Fineco and Alpha Bank SA, you can compare the effects of market volatilities on FinecoBank Banca and Alpha Bank 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 FinecoBank Banca with a short position of Alpha Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of FinecoBank Banca and Alpha Bank.
Diversification Opportunities for FinecoBank Banca and Alpha Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FinecoBank and Alpha is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FinecoBank Banca Fineco and Alpha Bank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Bank SA and FinecoBank Banca 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 FinecoBank Banca Fineco are associated (or correlated) with Alpha Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Bank SA has no effect on the direction of FinecoBank Banca i.e., FinecoBank Banca and Alpha Bank go up and down completely randomly.
Pair Corralation between FinecoBank Banca and Alpha Bank
Assuming the 90 days horizon FinecoBank Banca Fineco is expected to generate 0.72 times more return on investment than Alpha Bank. However, FinecoBank Banca Fineco is 1.39 times less risky than Alpha Bank. It trades about 0.03 of its potential returns per unit of risk. Alpha Bank SA is currently generating about 0.02 per unit of risk. If you would invest 1,345 in FinecoBank Banca Fineco on August 26, 2024 and sell it today you would earn a total of 103.00 from holding FinecoBank Banca Fineco or generate 7.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 46.25% |
| Values | Daily Returns |
FinecoBank Banca Fineco vs. Alpha Bank SA
Performance |
| Timeline |
| FinecoBank Banca Fineco |
| Alpha Bank SA |
FinecoBank Banca and Alpha Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FinecoBank Banca and Alpha Bank
The main advantage of trading using opposite FinecoBank Banca and Alpha Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FinecoBank Banca position performs unexpectedly, Alpha Bank 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 Alpha Bank will offset losses from the drop in Alpha Bank's long position.| FinecoBank Banca vs. Alpha Bank SA | FinecoBank Banca vs. Deutsche Bank AG | FinecoBank Banca vs. Western Alliance Bancorporation | FinecoBank Banca vs. KBC Groep NV |
| Alpha Bank vs. National Bank of | Alpha Bank vs. Piraeus Bank SA | Alpha Bank vs. Eurobank Ergasias SA | Alpha Bank vs. First Citizens BancShares |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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