Correlation Between Austriacard Holdings and National Bank
Can any of the company-specific risk be diversified away by investing in both Austriacard Holdings and National Bank 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 Austriacard Holdings and National Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Austriacard Holdings AG and National Bank of, you can compare the effects of market volatilities on Austriacard Holdings and National Bank 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 Austriacard Holdings with a short position of National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Austriacard Holdings and National Bank.
Diversification Opportunities for Austriacard Holdings and National Bank
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Austriacard and National is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Austriacard Holdings AG and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank and Austriacard Holdings 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 Austriacard Holdings AG are associated (or correlated) with National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank has no effect on the direction of Austriacard Holdings i.e., Austriacard Holdings and National Bank go up and down completely randomly.
Pair Corralation between Austriacard Holdings and National Bank
Assuming the 90 days trading horizon Austriacard Holdings AG is expected to generate 0.74 times more return on investment than National Bank. However, Austriacard Holdings AG is 1.36 times less risky than National Bank. It trades about -0.11 of its potential returns per unit of risk. National Bank of is currently generating about -0.13 per unit of risk. If you would invest 550.00 in Austriacard Holdings AG on August 27, 2024 and sell it today you would lose (15.00) from holding Austriacard Holdings AG or give up 2.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Austriacard Holdings AG vs. National Bank of
Performance |
| Timeline |
| Austriacard Holdings |
| National Bank |
Austriacard Holdings and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Austriacard Holdings and National Bank
The main advantage of trading using opposite Austriacard Holdings and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austriacard Holdings position performs unexpectedly, National Bank 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 National Bank will offset losses from the drop in National Bank's long position.| Austriacard Holdings vs. National Bank of | Austriacard Holdings vs. As Commercial Industrial | Austriacard Holdings vs. Profile Systems Software | Austriacard Holdings vs. Bank of Greece |
| National Bank vs. Alpha Services and | National Bank vs. Eurobank Ergasias Services | National Bank vs. Piraeus Financial Holdings | National Bank vs. Greek Organization of |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |