Correlation Between First Hawaiian and Eurobank Ergasias
Can any of the company-specific risk be diversified away by investing in both First Hawaiian and Eurobank Ergasias 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 First Hawaiian and Eurobank Ergasias into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Hawaiian and Eurobank Ergasias SA, you can compare the effects of market volatilities on First Hawaiian and Eurobank Ergasias 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 First Hawaiian with a short position of Eurobank Ergasias. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Hawaiian and Eurobank Ergasias.
Diversification Opportunities for First Hawaiian and Eurobank Ergasias
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between First and Eurobank is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding First Hawaiian and Eurobank Ergasias SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobank Ergasias and First Hawaiian 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 First Hawaiian are associated (or correlated) with Eurobank Ergasias. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eurobank Ergasias has no effect on the direction of First Hawaiian i.e., First Hawaiian and Eurobank Ergasias go up and down completely randomly.
Pair Corralation between First Hawaiian and Eurobank Ergasias
Considering the 90-day investment horizon First Hawaiian is expected to under-perform the Eurobank Ergasias. But the stock apears to be less risky and, when comparing its historical volatility, First Hawaiian is 2.39 times less risky than Eurobank Ergasias. The stock trades about 0.0 of its potential returns per unit of risk. The Eurobank Ergasias SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 111.00 in Eurobank Ergasias SA on December 2, 2024 and sell it today you would earn a total of 13.00 from holding Eurobank Ergasias SA or generate 11.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
First Hawaiian vs. Eurobank Ergasias SA
Performance |
Timeline |
First Hawaiian |
Eurobank Ergasias |
First Hawaiian and Eurobank Ergasias Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with First Hawaiian and Eurobank Ergasias
The main advantage of trading using opposite First Hawaiian and Eurobank Ergasias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Hawaiian position performs unexpectedly, Eurobank Ergasias 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 Eurobank Ergasias will offset losses from the drop in Eurobank Ergasias' long position.First Hawaiian vs. Territorial Bancorp | First Hawaiian vs. Bank of Hawaii | First Hawaiian vs. Financial Institutions | First Hawaiian vs. Heritage Financial |
Eurobank Ergasias vs. National Bank of | Eurobank Ergasias vs. Piraeus Bank SA | Eurobank Ergasias vs. Alpha Bank SA | Eurobank Ergasias vs. First Citizens BancShares |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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