Correlation Between National Bank and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both National Bank and Batm Advanced 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 Batm Advanced 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 Batm Advanced Communications, you can compare the effects of market volatilities on National Bank and Batm Advanced 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 Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Batm Advanced.
Diversification Opportunities for National Bank and Batm Advanced
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Batm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and Batm Advanced Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Batm Advanced Commun 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 Batm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Batm Advanced Commun has no effect on the direction of National Bank i.e., National Bank and Batm Advanced go up and down completely randomly.
Pair Corralation between National Bank and Batm Advanced
Assuming the 90 days trading horizon National Bank of is expected to generate 0.33 times more return on investment than Batm Advanced. However, National Bank of is 3.05 times less risky than Batm Advanced. It trades about 0.06 of its potential returns per unit of risk. Batm Advanced Communications is currently generating about -0.01 per unit of risk. If you would invest 241.00 in National Bank of on September 4, 2024 and sell it today you would earn a total of 37.00 from holding National Bank of or generate 15.35% 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. Batm Advanced Communications
Performance |
| Timeline |
| National Bank |
| Batm Advanced Commun |
National Bank and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Batm Advanced
The main advantage of trading using opposite National Bank and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Batm Advanced 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 Batm Advanced will offset losses from the drop in Batm Advanced'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 |
| Batm Advanced vs. Odyssean Investment Trust | Batm Advanced vs. The Mercantile Investment | Batm Advanced vs. Gamma Communications PLC | Batm Advanced vs. FC Investment Trust |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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