Correlation Between PT Bank and Piraeus Bank
Can any of the company-specific risk be diversified away by investing in both PT 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 PT 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 PT Bank Central and Piraeus Bank SA, you can compare the effects of market volatilities on PT 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 PT Bank with a short position of Piraeus Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Piraeus Bank.
Diversification Opportunities for PT Bank and Piraeus Bank
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PBCRF and Piraeus is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central 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 PT 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 PT Bank Central 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 PT Bank i.e., PT Bank and Piraeus Bank go up and down completely randomly.
Pair Corralation between PT Bank and Piraeus Bank
Assuming the 90 days horizon PT Bank Central is expected to generate 1.22 times more return on investment than Piraeus Bank. However, PT Bank is 1.22 times more volatile than Piraeus Bank SA. It trades about 0.04 of its potential returns per unit of risk. Piraeus Bank SA is currently generating about 0.04 per unit of risk. If you would invest 57.00 in PT Bank Central on September 1, 2024 and sell it today you would earn a total of 10.00 from holding PT Bank Central or generate 17.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.14% |
| Values | Daily Returns |
PT Bank Central vs. Piraeus Bank SA
Performance |
| Timeline |
| PT Bank Central |
| Piraeus Bank SA |
PT Bank and Piraeus Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Piraeus Bank
The main advantage of trading using opposite PT Bank and Piraeus Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT 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.| PT Bank vs. Piraeus Bank SA | PT Bank vs. Turkiye Garanti Bankasi | PT Bank vs. Delhi Bank Corp | PT Bank vs. Uwharrie Capital Corp |
| Piraeus Bank vs. Turkiye Garanti Bankasi | Piraeus Bank vs. Delhi Bank Corp | Piraeus Bank vs. Uwharrie Capital Corp | Piraeus Bank vs. Bank Central Asia |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |