Correlation Between Lampsa Hellenic and Eurobank Ergasias
Can any of the company-specific risk be diversified away by investing in both Lampsa Hellenic 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 Lampsa Hellenic and Eurobank Ergasias into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lampsa Hellenic Hotels and Eurobank Ergasias Services, you can compare the effects of market volatilities on Lampsa Hellenic 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 Lampsa Hellenic with a short position of Eurobank Ergasias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lampsa Hellenic and Eurobank Ergasias.
Diversification Opportunities for Lampsa Hellenic and Eurobank Ergasias
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lampsa and Eurobank is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Lampsa Hellenic Hotels and Eurobank Ergasias Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobank Ergasias and Lampsa Hellenic 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 Lampsa Hellenic Hotels 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 Lampsa Hellenic i.e., Lampsa Hellenic and Eurobank Ergasias go up and down completely randomly.
Pair Corralation between Lampsa Hellenic and Eurobank Ergasias
Assuming the 90 days trading horizon Lampsa Hellenic is expected to generate 2030.0 times less return on investment than Eurobank Ergasias. But when comparing it to its historical volatility, Lampsa Hellenic Hotels is 9.38 times less risky than Eurobank Ergasias. It trades about 0.0 of its potential returns per unit of risk. Eurobank Ergasias Services is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 233.00 in Eurobank Ergasias Services on November 5, 2024 and sell it today you would earn a total of 9.00 from holding Eurobank Ergasias Services or generate 3.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Lampsa Hellenic Hotels vs. Eurobank Ergasias Services
Performance |
| Timeline |
| Lampsa Hellenic Hotels |
| Eurobank Ergasias |
Lampsa Hellenic and Eurobank Ergasias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lampsa Hellenic and Eurobank Ergasias
The main advantage of trading using opposite Lampsa Hellenic and Eurobank Ergasias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lampsa Hellenic 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.| Lampsa Hellenic vs. Intertech SA Inter | Lampsa Hellenic vs. Profile Systems Software | Lampsa Hellenic vs. Athens Medical CSA | Lampsa Hellenic vs. Interlife General Insurance |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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