Correlation Between National Bank and Catena Media
Can any of the company-specific risk be diversified away by investing in both National Bank and Catena Media 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 Catena Media 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 Catena Media PLC, you can compare the effects of market volatilities on National Bank and Catena Media 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 Catena Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Catena Media.
Diversification Opportunities for National Bank and Catena Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Catena is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and Catena Media PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catena Media PLC 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 Catena Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catena Media PLC has no effect on the direction of National Bank i.e., National Bank and Catena Media go up and down completely randomly.
Pair Corralation between National Bank and Catena Media
If you would invest 278.00 in National Bank of on September 4, 2024 and sell it today you would earn a total of 0.00 from holding National Bank of or generate 0.0% 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. Catena Media PLC
Performance |
| Timeline |
| National Bank |
| Catena Media PLC |
National Bank and Catena Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Catena Media
The main advantage of trading using opposite National Bank and Catena Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Catena Media 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 Catena Media will offset losses from the drop in Catena Media's long position.| National Bank vs. Batm Advanced Communications | National Bank vs. Aeorema Communications Plc | National Bank vs. Spirent Communications plc | National Bank vs. Lindsell Train Investment |
| Catena Media vs. Samsung Electronics Co | Catena Media vs. Samsung Electronics Co | Catena Media vs. Hyundai Motor | Catena Media vs. Toyota Motor Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |