Correlation Between AIRTEL MALAWI and NBS BANK
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By analyzing existing cross correlation between AIRTEL MALAWI PLC and NBS BANK LIMITED, you can compare the effects of market volatilities on AIRTEL MALAWI and NBS 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 AIRTEL MALAWI with a short position of NBS BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIRTEL MALAWI and NBS BANK.
Diversification Opportunities for AIRTEL MALAWI and NBS BANK
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between AIRTEL and NBS is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding AIRTEL MALAWI PLC and NBS BANK LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NBS BANK LIMITED and AIRTEL MALAWI 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 AIRTEL MALAWI PLC are associated (or correlated) with NBS BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NBS BANK LIMITED has no effect on the direction of AIRTEL MALAWI i.e., AIRTEL MALAWI and NBS BANK go up and down completely randomly.
Pair Corralation between AIRTEL MALAWI and NBS BANK
Assuming the 90 days trading horizon AIRTEL MALAWI is expected to generate 5.8 times less return on investment than NBS BANK. But when comparing it to its historical volatility, AIRTEL MALAWI PLC is 1.4 times less risky than NBS BANK. It trades about 0.04 of its potential returns per unit of risk. NBS BANK LIMITED is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 3,848 in NBS BANK LIMITED on November 2, 2024 and sell it today you would earn a total of 31,082 from holding NBS BANK LIMITED or generate 807.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIRTEL MALAWI PLC vs. NBS BANK LIMITED
Performance |
| Timeline |
| AIRTEL MALAWI PLC |
| NBS BANK LIMITED |
AIRTEL MALAWI and NBS BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIRTEL MALAWI and NBS BANK
The main advantage of trading using opposite AIRTEL MALAWI and NBS BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIRTEL MALAWI position performs unexpectedly, NBS 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 NBS BANK will offset losses from the drop in NBS BANK's long position.| AIRTEL MALAWI vs. FDH BANK PLC | AIRTEL MALAWI vs. NATIONAL INVESTMENT TRUST | AIRTEL MALAWI vs. STANDARD BANK LIMITED | AIRTEL MALAWI vs. NBS BANK LIMITED |
| NBS BANK vs. NATIONAL INVESTMENT TRUST | NBS BANK vs. MALAWI PROPERTY INVESTMENT | NBS BANK vs. FDH BANK PLC | NBS BANK vs. STANDARD BANK LIMITED |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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