Correlation Between Prodea Real and Piraeus Financial
Can any of the company-specific risk be diversified away by investing in both Prodea Real 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 Prodea Real and Piraeus Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prodea Real Estate and Piraeus Financial Holdings, you can compare the effects of market volatilities on Prodea Real 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 Prodea Real with a short position of Piraeus Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prodea Real and Piraeus Financial.
Diversification Opportunities for Prodea Real and Piraeus Financial
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Prodea and Piraeus is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Prodea Real Estate and Piraeus Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piraeus Financial and Prodea Real 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 Prodea Real Estate 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 Prodea Real i.e., Prodea Real and Piraeus Financial go up and down completely randomly.
Pair Corralation between Prodea Real and Piraeus Financial
Assuming the 90 days trading horizon Prodea Real Estate is expected to generate 2.19 times more return on investment than Piraeus Financial. However, Prodea Real is 2.19 times more volatile than Piraeus Financial Holdings. It trades about 0.21 of its potential returns per unit of risk. Piraeus Financial Holdings is currently generating about -0.03 per unit of risk. If you would invest 578.00 in Prodea Real Estate on September 13, 2024 and sell it today you would earn a total of 112.00 from holding Prodea Real Estate or generate 19.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prodea Real Estate vs. Piraeus Financial Holdings
Performance |
| Timeline |
| Prodea Real Estate |
| Piraeus Financial |
Prodea Real and Piraeus Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prodea Real and Piraeus Financial
The main advantage of trading using opposite Prodea Real and Piraeus Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prodea Real 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.| Prodea Real vs. CPI Computer Peripherals | Prodea Real vs. Karelia Tobacco | Prodea Real vs. Logismos Information Systems | Prodea Real vs. Foodlink AE |
| Piraeus Financial vs. Alpha Services and | Piraeus Financial vs. Eurobank Ergasias Services | Piraeus Financial vs. Greek Organization of | Piraeus Financial vs. Mytilineos SA |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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