Correlation Between National Bank and Atresmedia
Can any of the company-specific risk be diversified away by investing in both National Bank and Atresmedia 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 National Bank and Atresmedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Bank of and Atresmedia, you can compare the effects of market volatilities on National Bank and Atresmedia 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 National Bank with a short position of Atresmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Atresmedia.
Diversification Opportunities for National Bank and Atresmedia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Atresmedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and Atresmedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atresmedia and National Bank 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 National Bank of are associated (or correlated) with Atresmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atresmedia has no effect on the direction of National Bank i.e., National Bank and Atresmedia go up and down completely randomly.
Pair Corralation between National Bank and Atresmedia
Assuming the 90 days trading horizon National Bank is expected to generate 2.45 times less return on investment than Atresmedia. In addition to that, National Bank is 1.19 times more volatile than Atresmedia. It trades about 0.04 of its total potential returns per unit of risk. Atresmedia is currently generating about 0.1 per unit of volatility. If you would invest 316.00 in Atresmedia on September 12, 2024 and sell it today you would earn a total of 157.00 from holding Atresmedia or generate 49.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Bank of vs. Atresmedia
Performance |
| Timeline |
| National Bank |
| Atresmedia |
National Bank and Atresmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Atresmedia
The main advantage of trading using opposite National Bank and Atresmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Atresmedia 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 Atresmedia will offset losses from the drop in Atresmedia's long position.| National Bank vs. Hong Kong Land | National Bank vs. Neometals | National Bank vs. Coor Service Management | National Bank vs. Fidelity Sustainable USD |
| Atresmedia vs. Hong Kong Land | Atresmedia vs. Neometals | Atresmedia vs. Coor Service Management | Atresmedia vs. Fidelity Sustainable USD |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |