Correlation Between Credit Agricole and National Bank
Can any of the company-specific risk be diversified away by investing in both Credit Agricole 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 Credit Agricole and National Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Agricole Egypt and National Bank, you can compare the effects of market volatilities on Credit Agricole 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 Credit Agricole with a short position of National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Agricole and National Bank.
Diversification Opportunities for Credit Agricole and National Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Credit and National is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Credit Agricole Egypt and National Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank and Credit Agricole 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 Credit Agricole Egypt 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 Credit Agricole i.e., Credit Agricole and National Bank go up and down completely randomly.
Pair Corralation between Credit Agricole and National Bank
Assuming the 90 days trading horizon Credit Agricole Egypt is expected to generate 1.83 times more return on investment than National Bank. However, Credit Agricole is 1.83 times more volatile than National Bank. It trades about 0.09 of its potential returns per unit of risk. National Bank is currently generating about -0.05 per unit of risk. If you would invest 868.00 in Credit Agricole Egypt on August 24, 2024 and sell it today you would earn a total of 1,332 from holding Credit Agricole Egypt or generate 153.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Credit Agricole Egypt vs. National Bank
Performance |
| Timeline |
| Credit Agricole Egypt |
| National Bank |
Credit Agricole and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Agricole and National Bank
The main advantage of trading using opposite Credit Agricole and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Agricole 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.| Credit Agricole vs. Paint Chemicals Industries | Credit Agricole vs. Reacap Financial Investments | Credit Agricole vs. Egyptians For Investment | Credit Agricole vs. Misr Oils Soap |
| National Bank vs. Paint Chemicals Industries | National Bank vs. Reacap Financial Investments | National Bank vs. Egyptians For Investment | National Bank vs. Misr Oils Soap |
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
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |