Correlation Between Marine Bancorp and Eurobank Ergasias
Can any of the company-specific risk be diversified away by investing in both Marine Bancorp 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 Marine Bancorp and Eurobank Ergasias into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marine Bancorp of and Eurobank Ergasias Services, you can compare the effects of market volatilities on Marine Bancorp 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 Marine Bancorp with a short position of Eurobank Ergasias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marine Bancorp and Eurobank Ergasias.
Diversification Opportunities for Marine Bancorp and Eurobank Ergasias
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marine and Eurobank is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Marine Bancorp of and Eurobank Ergasias Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobank Ergasias and Marine Bancorp 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 Marine Bancorp of 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 Marine Bancorp i.e., Marine Bancorp and Eurobank Ergasias go up and down completely randomly.
Pair Corralation between Marine Bancorp and Eurobank Ergasias
Given the investment horizon of 90 days Marine Bancorp is expected to generate 104.74 times less return on investment than Eurobank Ergasias. But when comparing it to its historical volatility, Marine Bancorp of is 7.71 times less risky than Eurobank Ergasias. It trades about 0.02 of its potential returns per unit of risk. Eurobank Ergasias Services is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 209.00 in Eurobank Ergasias Services on October 24, 2024 and sell it today you would earn a total of 30.00 from holding Eurobank Ergasias Services or generate 14.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marine Bancorp of vs. Eurobank Ergasias Services
Performance |
| Timeline |
| Marine Bancorp |
| Eurobank Ergasias |
Marine Bancorp and Eurobank Ergasias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marine Bancorp and Eurobank Ergasias
The main advantage of trading using opposite Marine Bancorp and Eurobank Ergasias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marine Bancorp 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.| Marine Bancorp vs. Chester Mining | Marine Bancorp vs. Mangazeya Mining | Marine Bancorp vs. AKITA Drilling | Marine Bancorp vs. Sable Offshore Corp |
| Eurobank Ergasias vs. Broadcom | Eurobank Ergasias vs. KLA Tencor | Eurobank Ergasias vs. JD Sports Fashion | Eurobank Ergasias vs. Hollywood Intermediate |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Correlations Find global opportunities by holding instruments from different markets |