Correlation Between First Horizon and Eurobank Ergasias
Can any of the company-specific risk be diversified away by investing in both First Horizon 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 Horizon 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 Horizon National and Eurobank Ergasias Services, you can compare the effects of market volatilities on First Horizon 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 Horizon with a short position of Eurobank Ergasias. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Horizon and Eurobank Ergasias.
Diversification Opportunities for First Horizon and Eurobank Ergasias
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between First and Eurobank is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding First Horizon National and Eurobank Ergasias Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobank Ergasias and First Horizon 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 Horizon National 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 Horizon i.e., First Horizon and Eurobank Ergasias go up and down completely randomly.
Pair Corralation between First Horizon and Eurobank Ergasias
Considering the 90-day investment horizon First Horizon is expected to generate 3.36 times less return on investment than Eurobank Ergasias. But when comparing it to its historical volatility, First Horizon National is 1.07 times less risky than Eurobank Ergasias. It trades about 0.07 of its potential returns per unit of risk. Eurobank Ergasias Services is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 209.00 in Eurobank Ergasias Services on October 23, 2024 and sell it today you would earn a total of 30.00 from holding Eurobank Ergasias Services or generate 14.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Horizon National vs. Eurobank Ergasias Services
Performance |
| Timeline |
| First Horizon National |
| Eurobank Ergasias |
First Horizon and Eurobank Ergasias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Horizon and Eurobank Ergasias
The main advantage of trading using opposite First Horizon and Eurobank Ergasias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Horizon 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 Horizon vs. Zions Bancorporation | First Horizon vs. KeyCorp | First Horizon vs. Comerica | First Horizon vs. Western Alliance Bancorporation |
| Eurobank Ergasias vs. National Beverage Corp | Eurobank Ergasias vs. Vita Coco | Eurobank Ergasias vs. Meli Hotels International | Eurobank Ergasias vs. Oasis Hotel Resort |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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