Correlation Between National Bank and Lampsa Hellenic
Can any of the company-specific risk be diversified away by investing in both National Bank and Lampsa Hellenic 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 Lampsa Hellenic 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 Lampsa Hellenic Hotels, you can compare the effects of market volatilities on National Bank and Lampsa Hellenic 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 Lampsa Hellenic. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Lampsa Hellenic.
Diversification Opportunities for National Bank and Lampsa Hellenic
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and Lampsa is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and Lampsa Hellenic Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lampsa Hellenic Hotels 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 Lampsa Hellenic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lampsa Hellenic Hotels has no effect on the direction of National Bank i.e., National Bank and Lampsa Hellenic go up and down completely randomly.
Pair Corralation between National Bank and Lampsa Hellenic
Assuming the 90 days trading horizon National Bank of is expected to generate 2.12 times more return on investment than Lampsa Hellenic. However, National Bank is 2.12 times more volatile than Lampsa Hellenic Hotels. It trades about 0.3 of its potential returns per unit of risk. Lampsa Hellenic Hotels is currently generating about -0.01 per unit of risk. If you would invest 688.00 in National Bank of on October 26, 2024 and sell it today you would earn a total of 147.00 from holding National Bank of or generate 21.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Bank of vs. Lampsa Hellenic Hotels
Performance |
| Timeline |
| National Bank |
| Lampsa Hellenic Hotels |
National Bank and Lampsa Hellenic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Lampsa Hellenic
The main advantage of trading using opposite National Bank and Lampsa Hellenic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Lampsa Hellenic 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 Lampsa Hellenic will offset losses from the drop in Lampsa Hellenic's long position.| National Bank vs. Alpha Services and | National Bank vs. Piraeus Financial Holdings | National Bank vs. EL D Mouzakis | National Bank vs. Lampsa Hellenic Hotels |
| Lampsa Hellenic vs. National Bank of | Lampsa Hellenic vs. N Leventeris SA | Lampsa Hellenic vs. Eurobank Ergasias Services | Lampsa Hellenic vs. Vogiatzoglou Systems 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |