Correlation Between Intertech and Eurobank Ergasias
Can any of the company-specific risk be diversified away by investing in both Intertech 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 Intertech and Eurobank Ergasias into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intertech SA Inter and Eurobank Ergasias Services, you can compare the effects of market volatilities on Intertech 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 Intertech with a short position of Eurobank Ergasias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intertech and Eurobank Ergasias.
Diversification Opportunities for Intertech and Eurobank Ergasias
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Intertech and Eurobank is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Intertech SA Inter and Eurobank Ergasias Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobank Ergasias and Intertech 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 Intertech SA Inter 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 Intertech i.e., Intertech and Eurobank Ergasias go up and down completely randomly.
Pair Corralation between Intertech and Eurobank Ergasias
Assuming the 90 days trading horizon Intertech SA Inter is expected to under-perform the Eurobank Ergasias. In addition to that, Intertech is 1.26 times more volatile than Eurobank Ergasias Services. It trades about -0.03 of its total potential returns per unit of risk. Eurobank Ergasias Services is currently generating about 0.04 per unit of volatility. If you would invest 195.00 in Eurobank Ergasias Services on September 3, 2024 and sell it today you would earn a total of 16.00 from holding Eurobank Ergasias Services or generate 8.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intertech SA Inter vs. Eurobank Ergasias Services
Performance |
| Timeline |
| Intertech SA Inter |
| Eurobank Ergasias |
Intertech and Eurobank Ergasias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intertech and Eurobank Ergasias
The main advantage of trading using opposite Intertech and Eurobank Ergasias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intertech 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.| Intertech vs. Unibios Holdings SA | Intertech vs. Intracom Holdings SA | Intertech vs. Ideal Group SA | Intertech vs. Public Power |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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