Correlation Between New York and Eurobank Ergasias
Can any of the company-specific risk be diversified away by investing in both New York 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 New York and Eurobank Ergasias 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 Eurobank Ergasias SA, you can compare the effects of market volatilities on New York 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 New York with a short position of Eurobank Ergasias. Check out your portfolio center. Please also check ongoing floating volatility patterns of New York and Eurobank Ergasias.
Diversification Opportunities for New York and Eurobank Ergasias
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between New and Eurobank is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding New York Community and Eurobank Ergasias SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobank Ergasias 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 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 New York i.e., New York and Eurobank Ergasias go up and down completely randomly.
Pair Corralation between New York and Eurobank Ergasias
Given the investment horizon of 90 days New York Community is expected to generate 2.15 times more return on investment than Eurobank Ergasias. However, New York is 2.15 times more volatile than Eurobank Ergasias SA. It trades about 0.19 of its potential returns per unit of risk. Eurobank Ergasias SA is currently generating about 0.09 per unit of risk. 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 Against |
| Strength | Insignificant |
| Accuracy | 65.22% |
| Values | Daily Returns |
New York Community vs. Eurobank Ergasias SA
Performance |
| Timeline |
| New York Community |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eurobank Ergasias |
New York and Eurobank Ergasias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New York and Eurobank Ergasias
The main advantage of trading using opposite New York and Eurobank Ergasias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New York 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.| New York vs. KeyCorp | New York vs. Fifth Third Bancorp | New York vs. Regions Financial | New York vs. Zions Bancorporation |
| Eurobank Ergasias vs. National Bank of | Eurobank Ergasias vs. Piraeus Bank SA | Eurobank Ergasias vs. Alpha Bank SA | Eurobank Ergasias vs. First Citizens BancShares |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |