Correlation Between National Bank and Made Tech
Can any of the company-specific risk be diversified away by investing in both National Bank and Made Tech 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 Made Tech 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 Made Tech Group, you can compare the effects of market volatilities on National Bank and Made Tech 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 Made Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Made Tech.
Diversification Opportunities for National Bank and Made Tech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Made is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and Made Tech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Made Tech Group 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 Made Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Made Tech Group has no effect on the direction of National Bank i.e., National Bank and Made Tech go up and down completely randomly.
Pair Corralation between National Bank and Made Tech
Assuming the 90 days trading horizon National Bank is expected to generate 2.95 times less return on investment than Made Tech. But when comparing it to its historical volatility, National Bank of is 2.6 times less risky than Made Tech. It trades about 0.09 of its potential returns per unit of risk. Made Tech Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,575 in Made Tech Group on September 2, 2024 and sell it today you would earn a total of 725.00 from holding Made Tech Group or generate 46.03% 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. Made Tech Group
Performance |
| Timeline |
| National Bank |
| Made Tech Group |
National Bank and Made Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Made Tech
The main advantage of trading using opposite National Bank and Made Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Made Tech 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 Made Tech will offset losses from the drop in Made Tech's long position.| National Bank vs. Uniper SE | National Bank vs. Mulberry Group PLC | National Bank vs. London Security Plc | National Bank vs. Triad Group PLC |
| Made Tech vs. Kaufman Et Broad | Made Tech vs. EVS Broadcast Equipment | Made Tech vs. Ecclesiastical Insurance Office | Made Tech vs. Gaztransport et Technigaz |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |