Correlation Between National Bank and BriQ Properties
Can any of the company-specific risk be diversified away by investing in both National Bank and BriQ Properties 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 BriQ Properties 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 BriQ Properties Real, you can compare the effects of market volatilities on National Bank and BriQ Properties 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 BriQ Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and BriQ Properties.
Diversification Opportunities for National Bank and BriQ Properties
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between National and BriQ is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and BriQ Properties Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BriQ Properties Real 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 BriQ Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BriQ Properties Real has no effect on the direction of National Bank i.e., National Bank and BriQ Properties go up and down completely randomly.
Pair Corralation between National Bank and BriQ Properties
Assuming the 90 days trading horizon National Bank of is expected to under-perform the BriQ Properties. In addition to that, National Bank is 1.79 times more volatile than BriQ Properties Real. It trades about -0.09 of its total potential returns per unit of risk. BriQ Properties Real is currently generating about 0.12 per unit of volatility. If you would invest 204.00 in BriQ Properties Real on August 24, 2024 and sell it today you would earn a total of 5.00 from holding BriQ Properties Real or generate 2.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Bank of vs. BriQ Properties Real
Performance |
| Timeline |
| National Bank |
| BriQ Properties Real |
National Bank and BriQ Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and BriQ Properties
The main advantage of trading using opposite National Bank and BriQ Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, BriQ Properties 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 BriQ Properties will offset losses from the drop in BriQ Properties' 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 |
| BriQ Properties vs. Admie Holding SA | BriQ Properties vs. Quest Holdings SA | BriQ Properties vs. Mytilineos SA | BriQ Properties vs. Terna Energy Societe |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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