Correlation Between National Bank and As Commercial
Can any of the company-specific risk be diversified away by investing in both National Bank and As Commercial 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 National Bank and As Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Bank of and As Commercial Industrial, you can compare the effects of market volatilities on National Bank and As Commercial 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 National Bank with a short position of As Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and As Commercial.
Diversification Opportunities for National Bank and As Commercial
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between National and ASCO is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and As Commercial Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on As Commercial Industrial and National Bank 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 National Bank of are associated (or correlated) with As Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of As Commercial Industrial has no effect on the direction of National Bank i.e., National Bank and As Commercial go up and down completely randomly.
Pair Corralation between National Bank and As Commercial
Assuming the 90 days trading horizon National Bank is expected to generate 1.57 times less return on investment than As Commercial. But when comparing it to its historical volatility, National Bank of is 1.13 times less risky than As Commercial. It trades about 0.23 of its potential returns per unit of risk. As Commercial Industrial is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 304.00 in As Commercial Industrial on November 5, 2024 and sell it today you would earn a total of 23.00 from holding As Commercial Industrial or generate 7.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Bank of vs. As Commercial Industrial
Performance |
| Timeline |
| National Bank |
| As Commercial Industrial |
National Bank and As Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and As Commercial
The main advantage of trading using opposite National Bank and As Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, As Commercial 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 As Commercial will offset losses from the drop in As Commercial's long position.| National Bank vs. Alpha Services and | National Bank vs. Eurobank Ergasias Services | National Bank vs. Piraeus Financial Holdings | National Bank vs. Greek Organization of |
| As Commercial vs. Autohellas SA | As Commercial vs. BriQ Properties Real | As Commercial vs. Thrace Plastics Holding | As Commercial vs. Kri Kri Milk Industry |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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