Correlation Between Air Link and National Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between Air Link Communication and National Bank of, you can compare the effects of market volatilities on Air Link 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 Air Link with a short position of National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Link and National Bank.
Diversification Opportunities for Air Link and National Bank
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Air and National is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Air Link Communication and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank and Air Link 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 Air Link Communication 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 Air Link i.e., Air Link and National Bank go up and down completely randomly.
Pair Corralation between Air Link and National Bank
Assuming the 90 days trading horizon Air Link Communication is expected to under-perform the National Bank. But the stock apears to be less risky and, when comparing its historical volatility, Air Link Communication is 2.2 times less risky than National Bank. The stock trades about -0.09 of its potential returns per unit of risk. The National Bank of is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 6,329 in National Bank of on November 27, 2024 and sell it today you would earn a total of 1,111 from holding National Bank of or generate 17.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Link Communication vs. National Bank of
Performance |
| Timeline |
| Air Link Communication |
| National Bank |
Air Link and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Link and National Bank
The main advantage of trading using opposite Air Link and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Link 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.| Air Link vs. JS Bank | Air Link vs. Arpak International Investment | Air Link vs. United Insurance | Air Link vs. Standard Chartered Bank |
| National Bank vs. Pakistan Telecommunication | National Bank vs. Atlas Insurance | National Bank vs. Standard Chartered Bank | National Bank vs. Century Insurance |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |