Correlation Between Panther Metals and Erste Group
Can any of the company-specific risk be diversified away by investing in both Panther Metals and Erste Group 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 Panther Metals and Erste Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panther Metals PLC and Erste Group Bank, you can compare the effects of market volatilities on Panther Metals and Erste Group 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 Panther Metals with a short position of Erste Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panther Metals and Erste Group.
Diversification Opportunities for Panther Metals and Erste Group
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Panther and Erste is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC and Erste Group Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erste Group Bank and Panther Metals 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 Panther Metals PLC are associated (or correlated) with Erste Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erste Group Bank has no effect on the direction of Panther Metals i.e., Panther Metals and Erste Group go up and down completely randomly.
Pair Corralation between Panther Metals and Erste Group
Assuming the 90 days trading horizon Panther Metals PLC is expected to under-perform the Erste Group. In addition to that, Panther Metals is 2.85 times more volatile than Erste Group Bank. It trades about -0.01 of its total potential returns per unit of risk. Erste Group Bank is currently generating about 0.1 per unit of volatility. If you would invest 2,875 in Erste Group Bank on January 21, 2025 and sell it today you would earn a total of 3,270 from holding Erste Group Bank or generate 113.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.0% |
| Values | Daily Returns |
Panther Metals PLC vs. Erste Group Bank
Performance |
| Timeline |
| Panther Metals PLC |
| Erste Group Bank |
Panther Metals and Erste Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panther Metals and Erste Group
The main advantage of trading using opposite Panther Metals and Erste Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panther Metals position performs unexpectedly, Erste Group 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 Erste Group will offset losses from the drop in Erste Group's long position.| Panther Metals vs. Gaming Realms plc | Panther Metals vs. Gear4music Plc | Panther Metals vs. Ross Stores | Panther Metals vs. Home Depot |
| Erste Group vs. JD Sports Fashion | Erste Group vs. Lindsell Train Investment | Erste Group vs. Kinnevik Investment AB | Erste Group vs. Aurora Investment Trust |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |