Correlation Between Emporiki Eisagogiki and Eurobank Ergasias
Can any of the company-specific risk be diversified away by investing in both Emporiki Eisagogiki 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 Emporiki Eisagogiki and Eurobank Ergasias 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 Eurobank Ergasias Services, you can compare the effects of market volatilities on Emporiki Eisagogiki 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 Emporiki Eisagogiki with a short position of Eurobank Ergasias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emporiki Eisagogiki and Eurobank Ergasias.
Diversification Opportunities for Emporiki Eisagogiki and Eurobank Ergasias
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Emporiki and Eurobank is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Emporiki Eisagogiki Aftokinito and Eurobank Ergasias Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobank Ergasias 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 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 Emporiki Eisagogiki i.e., Emporiki Eisagogiki and Eurobank Ergasias go up and down completely randomly.
Pair Corralation between Emporiki Eisagogiki and Eurobank Ergasias
Assuming the 90 days trading horizon Emporiki Eisagogiki is expected to generate 2.08 times less return on investment than Eurobank Ergasias. In addition to that, Emporiki Eisagogiki is 1.42 times more volatile than Eurobank Ergasias Services. It trades about 0.03 of its total potential returns per unit of risk. Eurobank Ergasias Services is currently generating about 0.09 per unit of volatility. If you would invest 98.00 in Eurobank Ergasias Services on August 28, 2024 and sell it today you would earn a total of 107.00 from holding Eurobank Ergasias Services or generate 109.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emporiki Eisagogiki Aftokinito vs. Eurobank Ergasias Services
Performance |
| Timeline |
| Emporiki Eisagogiki |
| Eurobank Ergasias |
Emporiki Eisagogiki and Eurobank Ergasias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emporiki Eisagogiki and Eurobank Ergasias
The main advantage of trading using opposite Emporiki Eisagogiki and Eurobank Ergasias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emporiki Eisagogiki 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.| Emporiki Eisagogiki vs. National Bank of | Emporiki Eisagogiki vs. N Leventeris SA | Emporiki Eisagogiki vs. Eurobank Ergasias Services | Emporiki Eisagogiki vs. Vogiatzoglou Systems SA |
| Eurobank Ergasias vs. National Bank of | Eurobank Ergasias vs. EL D Mouzakis | Eurobank Ergasias vs. Lampsa Hellenic Hotels | Eurobank Ergasias vs. Alpha Trust Mutual |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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