Correlation Between Lloyds Banking and Piraeus Financial
Can any of the company-specific risk be diversified away by investing in both Lloyds Banking and Piraeus Financial 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 Lloyds Banking and Piraeus Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lloyds Banking Group and Piraeus Financial Holdings, you can compare the effects of market volatilities on Lloyds Banking and Piraeus Financial 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 Lloyds Banking with a short position of Piraeus Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lloyds Banking and Piraeus Financial.
Diversification Opportunities for Lloyds Banking and Piraeus Financial
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lloyds and Piraeus is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Lloyds Banking Group and Piraeus Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piraeus Financial and Lloyds Banking 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 Lloyds Banking Group are associated (or correlated) with Piraeus Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piraeus Financial has no effect on the direction of Lloyds Banking i.e., Lloyds Banking and Piraeus Financial go up and down completely randomly.
Pair Corralation between Lloyds Banking and Piraeus Financial
If you would invest 379.00 in Piraeus Financial Holdings on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Piraeus Financial Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Lloyds Banking Group vs. Piraeus Financial Holdings
Performance |
| Timeline |
| Lloyds Banking Group |
| Piraeus Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lloyds Banking and Piraeus Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lloyds Banking and Piraeus Financial
The main advantage of trading using opposite Lloyds Banking and Piraeus Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lloyds Banking position performs unexpectedly, Piraeus Financial 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 Financial will offset losses from the drop in Piraeus Financial's long position.| Lloyds Banking vs. Itau Unibanco Banco | Lloyds Banking vs. Grupo Financiero Galicia | Lloyds Banking vs. Banco Macro SA | Lloyds Banking vs. Banco Santander Brasil |
| Piraeus Financial vs. Alpha Bank SA | Piraeus Financial vs. Eurobank Ergasias SA | Piraeus Financial vs. Piraeus Bank SA | Piraeus Financial vs. First Citizens BancShares |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Transaction History View history of all your transactions and understand their impact on performance |