Correlation Between National Bank and Piraeus Financial
Can any of the company-specific risk be diversified away by investing in both National Bank 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 National Bank and Piraeus Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Bank of and Piraeus Financial Holdings, you can compare the effects of market volatilities on National Bank 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 National Bank with a short position of Piraeus Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Piraeus Financial.
Diversification Opportunities for National Bank and Piraeus Financial
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and Piraeus is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and Piraeus Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piraeus Financial and National 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 National Bank of 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 National Bank i.e., National Bank and Piraeus Financial go up and down completely randomly.
Pair Corralation between National Bank and Piraeus Financial
If you would invest 379.00 in Piraeus Financial Holdings on August 29, 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 | 4.35% |
| Values | Daily Returns |
National Bank of vs. Piraeus Financial Holdings
Performance |
| Timeline |
| National Bank |
| Piraeus Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
National Bank and Piraeus Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Piraeus Financial
The main advantage of trading using opposite National Bank and Piraeus Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank 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.| National Bank vs. Alpha Bank SA | National Bank vs. Eurobank Ergasias SA | National Bank vs. Piraeus Bank SA | National Bank vs. PT Bank Central |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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