Correlation Between National Bank and Kekrops SA
Can any of the company-specific risk be diversified away by investing in both National Bank and Kekrops SA 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 Kekrops SA 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 Kekrops SA, you can compare the effects of market volatilities on National Bank and Kekrops SA 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 Kekrops SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Kekrops SA.
Diversification Opportunities for National Bank and Kekrops SA
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between National and Kekrops is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and Kekrops SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kekrops SA 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 Kekrops SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kekrops SA has no effect on the direction of National Bank i.e., National Bank and Kekrops SA go up and down completely randomly.
Pair Corralation between National Bank and Kekrops SA
Assuming the 90 days trading horizon National Bank of is expected to generate 0.7 times more return on investment than Kekrops SA. However, National Bank of is 1.43 times less risky than Kekrops SA. It trades about -0.17 of its potential returns per unit of risk. Kekrops SA is currently generating about -0.18 per unit of risk. If you would invest 768.00 in National Bank of on August 31, 2024 and sell it today you would lose (87.00) from holding National Bank of or give up 11.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.73% |
| Values | Daily Returns |
National Bank of vs. Kekrops SA
Performance |
| Timeline |
| National Bank |
| Kekrops SA |
National Bank and Kekrops SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Kekrops SA
The main advantage of trading using opposite National Bank and Kekrops SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Kekrops SA 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 Kekrops SA will offset losses from the drop in Kekrops SA'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 |
| Kekrops SA vs. Alpha Astika Akinita | Kekrops SA vs. National Bank of | Kekrops SA vs. EL D Mouzakis | Kekrops SA vs. Lampsa Hellenic Hotels |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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