Correlation Between Keurig Dr and Eurobank Ergasias
Can any of the company-specific risk be diversified away by investing in both Keurig Dr 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 Keurig Dr and Eurobank Ergasias into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keurig Dr Pepper and Eurobank Ergasias Services, you can compare the effects of market volatilities on Keurig Dr 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 Keurig Dr with a short position of Eurobank Ergasias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keurig Dr and Eurobank Ergasias.
Diversification Opportunities for Keurig Dr and Eurobank Ergasias
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Keurig and Eurobank is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Keurig Dr Pepper and Eurobank Ergasias Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobank Ergasias and Keurig Dr 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 Keurig Dr Pepper 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 Keurig Dr i.e., Keurig Dr and Eurobank Ergasias go up and down completely randomly.
Pair Corralation between Keurig Dr and Eurobank Ergasias
Considering the 90-day investment horizon Keurig Dr Pepper is expected to under-perform the Eurobank Ergasias. But the stock apears to be less risky and, when comparing its historical volatility, Keurig Dr Pepper is 2.84 times less risky than Eurobank Ergasias. The stock trades about -0.37 of its potential returns per unit of risk. The Eurobank Ergasias Services is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 209.00 in Eurobank Ergasias Services on October 11, 2024 and sell it today you would earn a total of 15.00 from holding Eurobank Ergasias Services or generate 7.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keurig Dr Pepper vs. Eurobank Ergasias Services
Performance |
| Timeline |
| Keurig Dr Pepper |
| Eurobank Ergasias |
Keurig Dr and Eurobank Ergasias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keurig Dr and Eurobank Ergasias
The main advantage of trading using opposite Keurig Dr and Eurobank Ergasias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keurig Dr 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.| Keurig Dr vs. Aquagold International | Keurig Dr vs. Morningstar Unconstrained Allocation | Keurig Dr vs. Thrivent High Yield | Keurig Dr vs. Via Renewables |
| Eurobank Ergasias vs. Hunter Creek Mining | Eurobank Ergasias vs. Keurig Dr Pepper | Eurobank Ergasias vs. Philip Morris International | Eurobank Ergasias vs. Mako Mining Corp |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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