Correlation Between Piraeus Financial and Performance Technologies

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

Diversification Opportunities for Piraeus Financial and Performance Technologies

0.86
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Piraeus and Performance is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Piraeus Financial Holdings and Performance Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Technologies 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 Performance Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Technologies has no effect on the direction of Piraeus Financial i.e., Piraeus Financial and Performance Technologies go up and down completely randomly.

Pair Corralation between Piraeus Financial and Performance Technologies

Assuming the 90 days trading horizon Piraeus Financial Holdings is expected to generate 0.97 times more return on investment than Performance Technologies. However, Piraeus Financial Holdings is 1.03 times less risky than Performance Technologies. It trades about 0.3 of its potential returns per unit of risk. Performance Technologies SA is currently generating about 0.18 per unit of risk. If you would invest  480.00  in Piraeus Financial Holdings on April 23, 2025 and sell it today you would earn a total of  195.00  from holding Piraeus Financial Holdings or generate 40.63% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Piraeus Financial Holdings  vs.  Performance Technologies SA

 Performance 
       Timeline  
Piraeus Financial 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Piraeus Financial Holdings are ranked lower than 23 (%) 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.
Performance Technologies 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Performance Technologies SA are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Performance Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

Piraeus Financial and Performance Technologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Piraeus Financial and Performance Technologies

The main advantage of trading using opposite Piraeus Financial and Performance Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piraeus Financial position performs unexpectedly, Performance Technologies 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 Performance Technologies will offset losses from the drop in Performance Technologies' long position.
The idea behind Piraeus Financial Holdings and Performance Technologies 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

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