Correlation Between FineMark Holdings and Piraeus Bank
Can any of the company-specific risk be diversified away by investing in both FineMark Holdings and Piraeus 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 FineMark Holdings and Piraeus Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FineMark Holdings and Piraeus Bank SA, you can compare the effects of market volatilities on FineMark Holdings and Piraeus 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 FineMark Holdings with a short position of Piraeus Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of FineMark Holdings and Piraeus Bank.
Diversification Opportunities for FineMark Holdings and Piraeus Bank
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FineMark and Piraeus is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding FineMark Holdings and Piraeus Bank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piraeus Bank SA and FineMark Holdings 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 FineMark Holdings are associated (or correlated) with Piraeus Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piraeus Bank SA has no effect on the direction of FineMark Holdings i.e., FineMark Holdings and Piraeus Bank go up and down completely randomly.
Pair Corralation between FineMark Holdings and Piraeus Bank
Given the investment horizon of 90 days FineMark Holdings is expected to under-perform the Piraeus Bank. But the otc stock apears to be less risky and, when comparing its historical volatility, FineMark Holdings is 4.75 times less risky than Piraeus Bank. The otc stock trades about -0.02 of its potential returns per unit of risk. The Piraeus Bank SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 166.00 in Piraeus Bank SA on September 3, 2024 and sell it today you would earn a total of 218.00 from holding Piraeus Bank SA or generate 131.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FineMark Holdings vs. Piraeus Bank SA
Performance |
| Timeline |
| FineMark Holdings |
| Piraeus Bank SA |
FineMark Holdings and Piraeus Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FineMark Holdings and Piraeus Bank
The main advantage of trading using opposite FineMark Holdings and Piraeus Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FineMark Holdings position performs unexpectedly, Piraeus 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 Piraeus Bank will offset losses from the drop in Piraeus Bank's long position.| FineMark Holdings vs. First Hawaiian | FineMark Holdings vs. Central Pacific Financial | FineMark Holdings vs. Territorial Bancorp | FineMark Holdings vs. Comerica |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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