Correlation Between Metropolitan Bank and Piraeus Bank
Can any of the company-specific risk be diversified away by investing in both Metropolitan Bank and Piraeus 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 Metropolitan Bank and Piraeus Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metropolitan Bank and and Piraeus Bank SA, you can compare the effects of market volatilities on Metropolitan Bank and Piraeus 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 Metropolitan Bank with a short position of Piraeus Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metropolitan Bank and Piraeus Bank.
Diversification Opportunities for Metropolitan Bank and Piraeus Bank
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Metropolitan and Piraeus is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Metropolitan Bank and and Piraeus Bank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piraeus Bank SA and Metropolitan Bank 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 Metropolitan Bank and are associated (or correlated) with Piraeus Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piraeus Bank SA has no effect on the direction of Metropolitan Bank i.e., Metropolitan Bank and Piraeus Bank go up and down completely randomly.
Pair Corralation between Metropolitan Bank and Piraeus Bank
Assuming the 90 days horizon Metropolitan Bank and is expected to generate 0.68 times more return on investment than Piraeus Bank. However, Metropolitan Bank and is 1.46 times less risky than Piraeus Bank. It trades about 0.08 of its potential returns per unit of risk. Piraeus Bank SA is currently generating about 0.01 per unit of risk. If you would invest 2,362 in Metropolitan Bank and on September 3, 2024 and sell it today you would earn a total of 412.00 from holding Metropolitan Bank and or generate 17.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Metropolitan Bank and vs. Piraeus Bank SA
Performance |
| Timeline |
| Metropolitan Bank |
| Piraeus Bank SA |
Metropolitan Bank and Piraeus Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metropolitan Bank and Piraeus Bank
The main advantage of trading using opposite Metropolitan Bank and Piraeus Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metropolitan Bank position performs unexpectedly, Piraeus 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 Piraeus Bank will offset losses from the drop in Piraeus Bank's long position.| Metropolitan Bank vs. Cedar Realty Trust | Metropolitan Bank vs. AKITA Drilling | Metropolitan Bank vs. National Vision Holdings | Metropolitan Bank vs. Integrated Drilling Equipment |
| Piraeus Bank vs. Bankinter SA ADR | Piraeus Bank vs. JAPAN POST BANK | Piraeus Bank vs. JAPAN POST BANK | Piraeus Bank vs. Eurobank Ergasias Services |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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