Correlation Between Eurobank Ergasias and Alpha Services

Can any of the company-specific risk be diversified away by investing in both Eurobank Ergasias and Alpha Services 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 Eurobank Ergasias and Alpha Services into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eurobank Ergasias SA and Alpha Services And, you can compare the effects of market volatilities on Eurobank Ergasias and Alpha Services 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 Eurobank Ergasias with a short position of Alpha Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and Alpha Services.

Diversification Opportunities for Eurobank Ergasias and Alpha Services

0.32

Correlation Coefficient

Eurobank Ergasias  Alpha Services

Weak diversification

The 3 months correlation between Eurobank and Alpha is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias SA and Alpha Services And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Services And and Eurobank Ergasias 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 Eurobank Ergasias SA are associated (or correlated) with Alpha Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Services And has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and Alpha Services go up and down completely randomly.

Pair Corralation between Eurobank Ergasias and Alpha Services

If you would invest  104.00  in Eurobank Ergasias SA on September 12, 2024 and sell it today you would earn a total of  6.00  from holding Eurobank Ergasias SA or generate 5.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.59%
Values	Daily Returns

Eurobank Ergasias SA  vs.  Alpha Services And

Eurobank Ergasias

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Eurobank Ergasias SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile technical and fundamental indicators, Eurobank Ergasias may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Alpha Services And

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alpha Services And has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, Alpha Services is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Eurobank Ergasias and Alpha Services

The main advantage of trading using opposite Eurobank Ergasias and Alpha Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eurobank Ergasias position performs unexpectedly, Alpha Services 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 Alpha Services will offset losses from the drop in Alpha Services' long position.

The idea behind Eurobank Ergasias SA and Alpha Services And pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.