Correlation Between Standard Bank and Eurobank Ergasias
Can any of the company-specific risk be diversified away by investing in both Standard Bank 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 Standard Bank and Eurobank Ergasias into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Standard Bank Group and Eurobank Ergasias Services, you can compare the effects of market volatilities on Standard Bank 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 Standard Bank with a short position of Eurobank Ergasias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Standard Bank and Eurobank Ergasias.
Diversification Opportunities for Standard Bank and Eurobank Ergasias
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Standard and Eurobank is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Standard Bank Group and Eurobank Ergasias Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobank Ergasias and Standard 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 Standard Bank Group 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 Standard Bank i.e., Standard Bank and Eurobank Ergasias go up and down completely randomly.
Pair Corralation between Standard Bank and Eurobank Ergasias
Assuming the 90 days horizon Standard Bank Group is expected to under-perform the Eurobank Ergasias. But the pink sheet apears to be less risky and, when comparing its historical volatility, Standard Bank Group is 1.28 times less risky than Eurobank Ergasias. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Eurobank Ergasias Services is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 209.00 in Eurobank Ergasias Services on October 25, 2024 and sell it today you would earn a total of 30.00 from holding Eurobank Ergasias Services or generate 14.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Standard Bank Group vs. Eurobank Ergasias Services
Performance |
| Timeline |
| Standard Bank Group |
| Eurobank Ergasias |
Standard Bank and Eurobank Ergasias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Standard Bank and Eurobank Ergasias
The main advantage of trading using opposite Standard Bank and Eurobank Ergasias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Standard Bank 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.| Standard Bank vs. Bank Central Asia | Standard Bank vs. Nedbank Group | Standard Bank vs. Kasikornbank Public Co | Standard Bank vs. KBC Groep NV |
| Eurobank Ergasias vs. Omni Health | Eurobank Ergasias vs. BioNTech SE | Eurobank Ergasias vs. Sellas Life Sciences | Eurobank Ergasias vs. Bank of New |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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