Correlation Between Unibios Holdings and National Bank
Can any of the company-specific risk be diversified away by investing in both Unibios 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 Unibios 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 Unibios Holdings SA and National Bank of, you can compare the effects of market volatilities on Unibios 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 Unibios Holdings with a short position of National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unibios Holdings and National Bank.
Diversification Opportunities for Unibios Holdings and National Bank
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Unibios and National is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Unibios Holdings SA and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank and Unibios 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 Unibios Holdings SA 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 Unibios Holdings i.e., Unibios Holdings and National Bank go up and down completely randomly.
Pair Corralation between Unibios Holdings and National Bank
Assuming the 90 days trading horizon Unibios Holdings SA is expected to generate 1.35 times more return on investment than National Bank. However, Unibios Holdings is 1.35 times more volatile than National Bank of. It trades about 0.03 of its potential returns per unit of risk. National Bank of is currently generating about -0.05 per unit of risk. If you would invest 131.00 in Unibios Holdings SA on September 3, 2024 and sell it today you would earn a total of 7.00 from holding Unibios Holdings SA or generate 5.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unibios Holdings SA vs. National Bank of
Performance |
| Timeline |
| Unibios Holdings |
| National Bank |
Unibios Holdings and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unibios Holdings and National Bank
The main advantage of trading using opposite Unibios Holdings and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unibios 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.| Unibios Holdings vs. Foodlink AE | Unibios Holdings vs. Elvalhalcor Hellenic Copper | Unibios Holdings vs. Technical Olympic SA | Unibios Holdings vs. National Bank of |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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