Correlation Between Integrated Drilling and Eurobank Ergasias

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

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

Diversification Opportunities for Integrated Drilling and Eurobank Ergasias

0.0

Correlation Coefficient

Integrated Drilling  Eurobank Ergasias

Pay attention - limited upside

The 3 months correlation between Integrated and Eurobank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Drilling Equipment and Eurobank Ergasias Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurobank Ergasias and Integrated Drilling 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 Integrated Drilling Equipment 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 Integrated Drilling i.e., Integrated Drilling and Eurobank Ergasias go up and down completely randomly.

Pair Corralation between Integrated Drilling and Eurobank Ergasias

If you would invest  139.00  in Eurobank Ergasias Services on October 26, 2024 and sell it today you would earn a total of  128.00  from holding Eurobank Ergasias Services or generate 92.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	65.92%
Values	Daily Returns

Integrated Drilling Equipment  vs.  Eurobank Ergasias Services

Integrated Drilling

Risk-Adjusted Performance

0 of 100

Very Weak

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

Eurobank Ergasias

Risk-Adjusted Performance

10 of 100

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 nearly unfluctuating technical and fundamental indicators, Eurobank Ergasias may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Integrated Drilling and Eurobank Ergasias

The main advantage of trading using opposite Integrated Drilling and Eurobank Ergasias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Drilling 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.

The idea behind Integrated Drilling Equipment and Eurobank Ergasias Services 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.