Correlation Between Piraeus Financial and Intertech
Can any of the company-specific risk be diversified away by investing in both Piraeus Financial and Intertech 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 Piraeus Financial and Intertech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Piraeus Financial Holdings and Intertech SA Inter, you can compare the effects of market volatilities on Piraeus Financial and Intertech 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 Intertech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Financial and Intertech.
Diversification Opportunities for Piraeus Financial and Intertech
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Piraeus and Intertech is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Financial Holdings and Intertech SA Inter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intertech SA Inter 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 Intertech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intertech SA Inter has no effect on the direction of Piraeus Financial i.e., Piraeus Financial and Intertech go up and down completely randomly.
Pair Corralation between Piraeus Financial and Intertech
Assuming the 90 days trading horizon Piraeus Financial Holdings is expected to generate 0.85 times more return on investment than Intertech. However, Piraeus Financial Holdings is 1.17 times less risky than Intertech. It trades about 0.07 of its potential returns per unit of risk. Intertech SA Inter is currently generating about 0.01 per unit of risk. If you would invest 221.00 in Piraeus Financial Holdings on November 5, 2024 and sell it today you would earn a total of 217.00 from holding Piraeus Financial Holdings or generate 98.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piraeus Financial Holdings vs. Intertech SA Inter
Performance |
| Timeline |
| Piraeus Financial |
| Intertech SA Inter |
Piraeus Financial and Intertech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Financial and Intertech
The main advantage of trading using opposite Piraeus Financial and Intertech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Financial position performs unexpectedly, Intertech 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 Intertech will offset losses from the drop in Intertech's long position.| Piraeus Financial vs. Sidma SA Steel | Piraeus Financial vs. Elvalhalcor Hellenic Copper | Piraeus Financial vs. Foodlink AE | Piraeus Financial vs. Intracom Constructions Societe |
| Intertech vs. Unibios Holdings SA | Intertech vs. Intracom Holdings SA | Intertech vs. Ideal Group SA | Intertech vs. Public Power |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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