Correlation Between Piraeus Financial and Nafpaktos Textile
Can any of the company-specific risk be diversified away by investing in both Piraeus Financial and Nafpaktos Textile 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 Nafpaktos Textile 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 Nafpaktos Textile Industry, you can compare the effects of market volatilities on Piraeus Financial and Nafpaktos Textile 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 Nafpaktos Textile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Financial and Nafpaktos Textile.
Diversification Opportunities for Piraeus Financial and Nafpaktos Textile
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Piraeus and Nafpaktos is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Financial Holdings and Nafpaktos Textile Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nafpaktos Textile 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 Nafpaktos Textile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nafpaktos Textile has no effect on the direction of Piraeus Financial i.e., Piraeus Financial and Nafpaktos Textile go up and down completely randomly.
Pair Corralation between Piraeus Financial and Nafpaktos Textile
Assuming the 90 days trading horizon Piraeus Financial Holdings is expected to generate 0.65 times more return on investment than Nafpaktos Textile. However, Piraeus Financial Holdings is 1.53 times less risky than Nafpaktos Textile. It trades about 0.22 of its potential returns per unit of risk. Nafpaktos Textile Industry is currently generating about -0.01 per unit of risk. If you would invest 359.00 in Piraeus Financial Holdings on September 23, 2024 and sell it today you would earn a total of 30.00 from holding Piraeus Financial Holdings or generate 8.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piraeus Financial Holdings vs. Nafpaktos Textile Industry
Performance |
| Timeline |
| Piraeus Financial |
| Nafpaktos Textile |
Piraeus Financial and Nafpaktos Textile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Financial and Nafpaktos Textile
The main advantage of trading using opposite Piraeus Financial and Nafpaktos Textile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Financial position performs unexpectedly, Nafpaktos Textile 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 Nafpaktos Textile will offset losses from the drop in Nafpaktos Textile's long position.| Piraeus Financial vs. National Bank of | Piraeus Financial vs. Profile Systems Software | Piraeus Financial vs. Logismos Information Systems | Piraeus Financial vs. Eurobank Ergasias Services |
| Nafpaktos Textile vs. Marfin Investment Group | Nafpaktos Textile vs. Optima bank SA | Nafpaktos Textile vs. Piraeus Financial Holdings | Nafpaktos Textile vs. Elvalhalcor Hellenic Copper |
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.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Commodity Directory Find actively traded commodities issued by global exchanges |