Correlation Between First Citizens and Eurobank Ergasias
Can any of the company-specific risk be diversified away by investing in both First Citizens and Eurobank Ergasias 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 First Citizens and Eurobank Ergasias into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Citizens BancShares and Eurobank Ergasias SA, you can compare the effects of market volatilities on First Citizens and Eurobank Ergasias 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 First Citizens with a short position of Eurobank Ergasias. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Citizens and Eurobank Ergasias.
Diversification Opportunities for First Citizens and Eurobank Ergasias
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Eurobank is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding First Citizens BancShares and Eurobank Ergasias SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobank Ergasias and First Citizens 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 First Citizens BancShares are associated (or correlated) with Eurobank Ergasias. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eurobank Ergasias has no effect on the direction of First Citizens i.e., First Citizens and Eurobank Ergasias go up and down completely randomly.
Pair Corralation between First Citizens and Eurobank Ergasias
Assuming the 90 days horizon First Citizens BancShares is expected to generate 1.91 times more return on investment than Eurobank Ergasias. However, First Citizens is 1.91 times more volatile than Eurobank Ergasias SA. It trades about 0.21 of its potential returns per unit of risk. Eurobank Ergasias SA is currently generating about 0.13 per unit of risk. If you would invest 194,186 in First Citizens BancShares on August 30, 2024 and sell it today you would earn a total of 36,662 from holding First Citizens BancShares or generate 18.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Citizens BancShares vs. Eurobank Ergasias SA
Performance |
| Timeline |
| First Citizens BancShares |
| Eurobank Ergasias |
First Citizens and Eurobank Ergasias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Citizens and Eurobank Ergasias
The main advantage of trading using opposite First Citizens and Eurobank Ergasias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Citizens position performs unexpectedly, Eurobank Ergasias 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 Eurobank Ergasias will offset losses from the drop in Eurobank Ergasias' long position.| First Citizens vs. Zions Bancorporation | First Citizens vs. KeyCorp | First Citizens vs. Comerica | First Citizens vs. First Horizon National |
| Eurobank Ergasias vs. National Bank of | Eurobank Ergasias vs. Piraeus Bank SA | Eurobank Ergasias vs. Alpha Bank SA | Eurobank Ergasias 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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