Correlation Between National Bank and Alpha Trust
Can any of the company-specific risk be diversified away by investing in both National Bank and Alpha Trust 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 Alpha Trust 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 Alpha Trust Mutual, you can compare the effects of market volatilities on National Bank and Alpha Trust 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 Alpha Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Alpha Trust.
Diversification Opportunities for National Bank and Alpha Trust
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Alpha is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and Alpha Trust Mutual in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Trust Mutual 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 Alpha Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Trust Mutual has no effect on the direction of National Bank i.e., National Bank and Alpha Trust go up and down completely randomly.
Pair Corralation between National Bank and Alpha Trust
Assuming the 90 days trading horizon National Bank of is expected to under-perform the Alpha Trust. In addition to that, National Bank is 4.92 times more volatile than Alpha Trust Mutual. It trades about -0.09 of its total potential returns per unit of risk. Alpha Trust Mutual is currently generating about 0.03 per unit of volatility. If you would invest 874.00 in Alpha Trust Mutual on August 24, 2024 and sell it today you would earn a total of 2.00 from holding Alpha Trust Mutual or generate 0.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Bank of vs. Alpha Trust Mutual
Performance |
| Timeline |
| National Bank |
| Alpha Trust Mutual |
National Bank and Alpha Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Alpha Trust
The main advantage of trading using opposite National Bank and Alpha Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Alpha Trust 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 Alpha Trust will offset losses from the drop in Alpha Trust's long position.| National Bank vs. Alpha Services and | National Bank vs. Eurobank Ergasias Services | National Bank vs. Greek Organization of | National Bank vs. Mytilineos SA |
| Alpha Trust vs. Jumbo SA | Alpha Trust vs. Gr Sarantis SA | Alpha Trust vs. Hellenic Exchanges | Alpha Trust vs. Aegean Airlines SA |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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