Correlation Between Teb Bancorp and Eurobank Ergasias
Can any of the company-specific risk be diversified away by investing in both Teb Bancorp 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 Teb Bancorp and Eurobank Ergasias into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teb Bancorp and Eurobank Ergasias Services, you can compare the effects of market volatilities on Teb Bancorp 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 Teb Bancorp with a short position of Eurobank Ergasias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teb Bancorp and Eurobank Ergasias.
Diversification Opportunities for Teb Bancorp and Eurobank Ergasias
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Teb and Eurobank is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Teb Bancorp and Eurobank Ergasias Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobank Ergasias and Teb Bancorp 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 Teb Bancorp 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 Teb Bancorp i.e., Teb Bancorp and Eurobank Ergasias go up and down completely randomly.
Pair Corralation between Teb Bancorp and Eurobank Ergasias
Given the investment horizon of 90 days Teb Bancorp is expected to generate 3.75 times less return on investment than Eurobank Ergasias. In addition to that, Teb Bancorp is 3.28 times more volatile than Eurobank Ergasias Services. It trades about 0.03 of its total potential returns per unit of risk. Eurobank Ergasias Services is currently generating about 0.35 per unit of volatility. If you would invest 209.00 in Eurobank Ergasias Services on October 12, 2024 and sell it today you would earn a total of 31.00 from holding Eurobank Ergasias Services or generate 14.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teb Bancorp vs. Eurobank Ergasias Services
Performance |
| Timeline |
| Teb Bancorp |
| Eurobank Ergasias |
Teb Bancorp and Eurobank Ergasias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teb Bancorp and Eurobank Ergasias
The main advantage of trading using opposite Teb Bancorp and Eurobank Ergasias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teb Bancorp 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.| Teb Bancorp vs. Eurobank Ergasias Services | Teb Bancorp vs. Standard Bank Group | Teb Bancorp vs. Bank Central Asia | Teb Bancorp vs. PSB Holdings |
| Eurobank Ergasias vs. IPG Photonics | Eurobank Ergasias vs. Globalfoundries | Eurobank Ergasias vs. STMicroelectronics NV ADR | Eurobank Ergasias vs. Omni Health |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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