Correlation Between Eurobank Ergasias and Kordellos

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

By analyzing existing cross correlation between Eurobank Ergasias Services and Kordellos Ch Bros, you can compare the effects of market volatilities on Eurobank Ergasias and Kordellos 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 Kordellos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eurobank Ergasias and Kordellos.

Diversification Opportunities for Eurobank Ergasias and Kordellos

0.0

Correlation Coefficient

Eurobank Ergasias  Kordellos

Pay attention - limited upside

The 3 months correlation between Eurobank and Kordellos is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eurobank Ergasias Services and Kordellos Ch Bros in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kordellos Ch Bros 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 Services are associated (or correlated) with Kordellos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kordellos Ch Bros has no effect on the direction of Eurobank Ergasias i.e., Eurobank Ergasias and Kordellos go up and down completely randomly.

Pair Corralation between Eurobank Ergasias and Kordellos

If you would invest  224.00  in Eurobank Ergasias Services on December 30, 2024 and sell it today you would earn a total of  33.00  from holding Eurobank Ergasias Services or generate 14.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Eurobank Ergasias Services  vs.  Kordellos Ch Bros

Eurobank Ergasias

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eurobank Ergasias Services are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Eurobank Ergasias sustained solid returns over the last few months and may actually be approaching a breakup point.

Kordellos Ch Bros

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kordellos Ch Bros has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Kordellos is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Eurobank Ergasias and Kordellos

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

The idea behind Eurobank Ergasias Services and Kordellos Ch Bros 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .