Correlation Between National Bank and Ktima Kostas
Can any of the company-specific risk be diversified away by investing in both National Bank and Ktima Kostas 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 Ktima Kostas 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 Ktima Kostas Lazaridis, you can compare the effects of market volatilities on National Bank and Ktima Kostas 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 Ktima Kostas. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Ktima Kostas.
Diversification Opportunities for National Bank and Ktima Kostas
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between National and Ktima is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and Ktima Kostas Lazaridis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ktima Kostas Lazaridis 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 Ktima Kostas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ktima Kostas Lazaridis has no effect on the direction of National Bank i.e., National Bank and Ktima Kostas go up and down completely randomly.
Pair Corralation between National Bank and Ktima Kostas
Assuming the 90 days trading horizon National Bank of is expected to under-perform the Ktima Kostas. In addition to that, National Bank is 1.28 times more volatile than Ktima Kostas Lazaridis. It trades about -0.12 of its total potential returns per unit of risk. Ktima Kostas Lazaridis is currently generating about -0.01 per unit of volatility. If you would invest 173.00 in Ktima Kostas Lazaridis on September 4, 2024 and sell it today you would lose (1.00) from holding Ktima Kostas Lazaridis or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
National Bank of vs. Ktima Kostas Lazaridis
Performance |
| Timeline |
| National Bank |
| Ktima Kostas Lazaridis |
National Bank and Ktima Kostas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Ktima Kostas
The main advantage of trading using opposite National Bank and Ktima Kostas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Ktima Kostas 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 Ktima Kostas will offset losses from the drop in Ktima Kostas' 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 |
| Ktima Kostas vs. National Bank of | Ktima Kostas vs. Foodlink AE | Ktima Kostas vs. Elvalhalcor Hellenic Copper | Ktima Kostas vs. Sidma SA Steel |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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