Correlation Between National Bank and Cairo Mezz
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By analyzing existing cross correlation between National Bank of and Cairo Mezz PLC, you can compare the effects of market volatilities on National Bank and Cairo Mezz 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 Cairo Mezz. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Cairo Mezz.
Diversification Opportunities for National Bank and Cairo Mezz
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and Cairo is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and Cairo Mezz PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cairo Mezz PLC 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 Cairo Mezz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cairo Mezz PLC has no effect on the direction of National Bank i.e., National Bank and Cairo Mezz go up and down completely randomly.
Pair Corralation between National Bank and Cairo Mezz
Assuming the 90 days trading horizon National Bank of is expected to generate 0.53 times more return on investment than Cairo Mezz. However, National Bank of is 1.89 times less risky than Cairo Mezz. It trades about -0.13 of its potential returns per unit of risk. Cairo Mezz PLC is currently generating about -0.13 per unit of risk. If you would invest 726.00 in National Bank of on August 27, 2024 and sell it today you would lose (34.00) from holding National Bank of or give up 4.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Bank of vs. Cairo Mezz PLC
Performance |
| Timeline |
| National Bank |
| Cairo Mezz PLC |
National Bank and Cairo Mezz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Cairo Mezz
The main advantage of trading using opposite National Bank and Cairo Mezz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Cairo Mezz 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 Cairo Mezz will offset losses from the drop in Cairo Mezz'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 |
| Cairo Mezz vs. Eurobank Ergasias Services | Cairo Mezz vs. Public Power | Cairo Mezz vs. Alpha Services and | Cairo Mezz vs. Mytilineos 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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