Correlation Between National Bank and IKloukinas ILappas
Can any of the company-specific risk be diversified away by investing in both National Bank and IKloukinas ILappas 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 IKloukinas ILappas 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 IKloukinas ILappas SA, you can compare the effects of market volatilities on National Bank and IKloukinas ILappas 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 IKloukinas ILappas. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and IKloukinas ILappas.
Diversification Opportunities for National Bank and IKloukinas ILappas
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between National and IKloukinas is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and IKloukinas ILappas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IKloukinas ILappas 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 IKloukinas ILappas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IKloukinas ILappas has no effect on the direction of National Bank i.e., National Bank and IKloukinas ILappas go up and down completely randomly.
Pair Corralation between National Bank and IKloukinas ILappas
Assuming the 90 days trading horizon National Bank of is expected to under-perform the IKloukinas ILappas. But the stock apears to be less risky and, when comparing its historical volatility, National Bank of is 1.09 times less risky than IKloukinas ILappas. The stock trades about -0.28 of its potential returns per unit of risk. The IKloukinas ILappas SA is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 156.00 in IKloukinas ILappas SA on September 2, 2024 and sell it today you would lose (5.00) from holding IKloukinas ILappas SA or give up 3.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Bank of vs. IKloukinas ILappas SA
Performance |
| Timeline |
| National Bank |
| IKloukinas ILappas |
National Bank and IKloukinas ILappas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and IKloukinas ILappas
The main advantage of trading using opposite National Bank and IKloukinas ILappas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, IKloukinas ILappas 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 IKloukinas ILappas will offset losses from the drop in IKloukinas ILappas' 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 |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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