Correlation Between Emporiki Eisagogiki and National Bank
Can any of the company-specific risk be diversified away by investing in both Emporiki Eisagogiki and National Bank 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 Emporiki Eisagogiki and National Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emporiki Eisagogiki Aftokiniton and National Bank of, you can compare the effects of market volatilities on Emporiki Eisagogiki and National Bank 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 Emporiki Eisagogiki with a short position of National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emporiki Eisagogiki and National Bank.
Diversification Opportunities for Emporiki Eisagogiki and National Bank
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Emporiki and National is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Emporiki Eisagogiki Aftokinito and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank and Emporiki Eisagogiki 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 Emporiki Eisagogiki Aftokiniton are associated (or correlated) with National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank has no effect on the direction of Emporiki Eisagogiki i.e., Emporiki Eisagogiki and National Bank go up and down completely randomly.
Pair Corralation between Emporiki Eisagogiki and National Bank
Assuming the 90 days trading horizon Emporiki Eisagogiki is expected to generate 1.93 times less return on investment than National Bank. In addition to that, Emporiki Eisagogiki is 1.33 times more volatile than National Bank of. It trades about 0.03 of its total potential returns per unit of risk. National Bank of is currently generating about 0.08 per unit of volatility. If you would invest 351.00 in National Bank of on August 28, 2024 and sell it today you would earn a total of 332.00 from holding National Bank of or generate 94.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emporiki Eisagogiki Aftokinito vs. National Bank of
Performance |
| Timeline |
| Emporiki Eisagogiki |
| National Bank |
Emporiki Eisagogiki and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emporiki Eisagogiki and National Bank
The main advantage of trading using opposite Emporiki Eisagogiki and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emporiki Eisagogiki position performs unexpectedly, National Bank 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 National Bank will offset losses from the drop in National Bank's long position.| Emporiki Eisagogiki vs. National Bank of | Emporiki Eisagogiki vs. N Leventeris SA | Emporiki Eisagogiki vs. Eurobank Ergasias Services | Emporiki Eisagogiki vs. Vogiatzoglou Systems SA |
| National Bank vs. Alpha Services and | National Bank vs. Eurobank Ergasias Services | National Bank vs. Piraeus Financial Holdings | National Bank 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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