Correlation Between New York and Piraeus Financial
Can any of the company-specific risk be diversified away by investing in both New York 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 New York and Piraeus Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New York Community and Piraeus Financial Holdings, you can compare the effects of market volatilities on New York 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 New York with a short position of Piraeus Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of New York and Piraeus Financial.
Diversification Opportunities for New York and Piraeus Financial
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between New and Piraeus is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding New York Community and Piraeus Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piraeus Financial and New York 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 New York Community 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 New York i.e., New York and Piraeus Financial go up and down completely randomly.
Pair Corralation between New York and Piraeus Financial
If you would invest 1,061 in New York Community on August 29, 2024 and sell it today you would earn a total of 132.00 from holding New York Community or generate 12.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 6.67% |
| Values | Daily Returns |
New York Community vs. Piraeus Financial Holdings
Performance |
| Timeline |
| New York Community |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Piraeus Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
New York and Piraeus Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New York and Piraeus Financial
The main advantage of trading using opposite New York and Piraeus Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New York 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.| New York vs. KeyCorp | New York vs. Fifth Third Bancorp | New York vs. Regions Financial | New York vs. Zions Bancorporation |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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