Correlation Between Piraeus Financial and Cairo Mezz
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By analyzing existing cross correlation between Piraeus Financial Holdings and Cairo Mezz PLC, you can compare the effects of market volatilities on Piraeus Financial and Cairo Mezz 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 Piraeus Financial with a short position of Cairo Mezz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Financial and Cairo Mezz.
Diversification Opportunities for Piraeus Financial and Cairo Mezz
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Piraeus and Cairo is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Financial Holdings and Cairo Mezz PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cairo Mezz PLC and Piraeus Financial 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 Piraeus Financial Holdings are associated (or correlated) with Cairo Mezz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cairo Mezz PLC has no effect on the direction of Piraeus Financial i.e., Piraeus Financial and Cairo Mezz go up and down completely randomly.
Pair Corralation between Piraeus Financial and Cairo Mezz
Assuming the 90 days trading horizon Piraeus Financial Holdings is expected to generate 0.99 times more return on investment than Cairo Mezz. However, Piraeus Financial Holdings is 1.01 times less risky than Cairo Mezz. It trades about 0.19 of its potential returns per unit of risk. Cairo Mezz PLC is currently generating about 0.01 per unit of risk. If you would invest 432.00 in Piraeus Financial Holdings on November 18, 2024 and sell it today you would earn a total of 35.00 from holding Piraeus Financial Holdings or generate 8.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piraeus Financial Holdings vs. Cairo Mezz PLC
Performance |
| Timeline |
| Piraeus Financial |
| Cairo Mezz PLC |
Piraeus Financial and Cairo Mezz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Financial and Cairo Mezz
The main advantage of trading using opposite Piraeus Financial and Cairo Mezz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Financial position performs unexpectedly, Cairo Mezz 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 Cairo Mezz will offset losses from the drop in Cairo Mezz's long position.| Piraeus Financial vs. Elton International Trading | Piraeus Financial vs. Technical Olympic SA | Piraeus Financial vs. Sidma SA Steel | Piraeus Financial vs. Interlife General Insurance |
| Cairo Mezz vs. Eurobank Ergasias Services | Cairo Mezz vs. Public Power | Cairo Mezz vs. Alpha Services and | Cairo Mezz 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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