Correlation Between Piraeus Financial and Proodeftiki
Can any of the company-specific risk be diversified away by investing in both Piraeus Financial and Proodeftiki 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 Proodeftiki 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 Proodeftiki SA, you can compare the effects of market volatilities on Piraeus Financial and Proodeftiki 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 Proodeftiki. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Financial and Proodeftiki.
Diversification Opportunities for Piraeus Financial and Proodeftiki
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Piraeus and Proodeftiki is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Financial Holdings and Proodeftiki SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proodeftiki SA 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 Proodeftiki. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proodeftiki SA has no effect on the direction of Piraeus Financial i.e., Piraeus Financial and Proodeftiki go up and down completely randomly.
Pair Corralation between Piraeus Financial and Proodeftiki
Assuming the 90 days trading horizon Piraeus Financial is expected to generate 3.2 times less return on investment than Proodeftiki. But when comparing it to its historical volatility, Piraeus Financial Holdings is 3.36 times less risky than Proodeftiki. It trades about 0.34 of its potential returns per unit of risk. Proodeftiki SA is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Proodeftiki SA on November 3, 2024 and sell it today you would earn a total of 10.00 from holding Proodeftiki SA or generate 35.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Piraeus Financial Holdings vs. Proodeftiki SA
Performance |
| Timeline |
| Piraeus Financial |
| Proodeftiki SA |
Piraeus Financial and Proodeftiki Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piraeus Financial and Proodeftiki
The main advantage of trading using opposite Piraeus Financial and Proodeftiki positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Financial position performs unexpectedly, Proodeftiki 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 Proodeftiki will offset losses from the drop in Proodeftiki's long position.| Piraeus Financial vs. Intracom Constructions Societe | Piraeus Financial vs. Interlife General Insurance | Piraeus Financial vs. General Commercial Industrial | Piraeus Financial vs. Profile Systems Software |
| Proodeftiki vs. Avax SA | Proodeftiki vs. Ekter SA | Proodeftiki vs. Intracom Constructions Societe | Proodeftiki vs. Alumil Aluminium Industry |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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