Correlation Between Piraeus Financial and Intracom Holdings

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

Diversification Opportunities for Piraeus Financial and Intracom Holdings

0.85

Correlation Coefficient

Piraeus Financial  Intracom Holdings

Very poor diversification

The 3 months correlation between Piraeus and Intracom is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Financial Holdings and Intracom Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intracom Holdings 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 Intracom Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intracom Holdings has no effect on the direction of Piraeus Financial i.e., Piraeus Financial and Intracom Holdings go up and down completely randomly.

Pair Corralation between Piraeus Financial and Intracom Holdings

Assuming the 90 days trading horizon Piraeus Financial Holdings is expected to generate 1.05 times more return on investment than Intracom Holdings. However, Piraeus Financial is 1.05 times more volatile than Intracom Holdings SA. It trades about 0.32 of its potential returns per unit of risk. Intracom Holdings SA is currently generating about 0.09 per unit of risk. If you would invest  472.00  in Piraeus Financial Holdings on April 25, 2025 and sell it today you would earn a total of  201.00  from holding Piraeus Financial Holdings or generate 42.58% return on investment over 90 days.

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

Piraeus Financial Holdings  vs.  Intracom Holdings SA

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 25 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Piraeus Financial sustained solid returns over the last few months and may actually be approaching a breakup point.

Intracom Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Intracom Holdings SA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Intracom Holdings may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Piraeus Financial and Intracom Holdings

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

The idea behind Piraeus Financial Holdings and Intracom Holdings SA 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.