Correlation Between Piraeus Financial and BLE Kedros

Can any of the company-specific risk be diversified away by investing in both Piraeus Financial and BLE Kedros 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 BLE Kedros 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 BLE Kedros REIC, you can compare the effects of market volatilities on Piraeus Financial and BLE Kedros 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 BLE Kedros. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piraeus Financial and BLE Kedros.

Diversification Opportunities for Piraeus Financial and BLE Kedros

0.95

Correlation Coefficient

Piraeus Financial  BLE Kedros

Almost no diversification

The 3 months correlation between Piraeus and BLE is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Financial Holdings and BLE Kedros REIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLE Kedros REIC 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 BLE Kedros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLE Kedros REIC has no effect on the direction of Piraeus Financial i.e., Piraeus Financial and BLE Kedros go up and down completely randomly.

Pair Corralation between Piraeus Financial and BLE Kedros

Assuming the 90 days trading horizon Piraeus Financial Holdings is expected to generate 12.1 times more return on investment than BLE Kedros. However, Piraeus Financial is 12.1 times more volatile than BLE Kedros REIC. It trades about 0.28 of its potential returns per unit of risk. BLE Kedros REIC is currently generating about 0.37 per unit of risk. If you would invest  484.00  in Piraeus Financial Holdings on April 24, 2025 and sell it today you would earn a total of  182.00  from holding Piraeus Financial Holdings or generate 37.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Piraeus Financial Holdings  vs.  BLE Kedros REIC

Piraeus Financial

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Piraeus Financial Holdings are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Piraeus Financial sustained solid returns over the last few months and may actually be approaching a breakup point.

BLE Kedros REIC

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BLE Kedros REIC are ranked lower than 29 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental indicators, BLE Kedros is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Piraeus Financial and BLE Kedros

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

The idea behind Piraeus Financial Holdings and BLE Kedros REIC 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.