Correlation Between National Bank and Nafpaktos Textile
Can any of the company-specific risk be diversified away by investing in both National Bank and Nafpaktos Textile 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 Nafpaktos Textile 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 Nafpaktos Textile Industry, you can compare the effects of market volatilities on National Bank and Nafpaktos Textile 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 Nafpaktos Textile. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Nafpaktos Textile.
Diversification Opportunities for National Bank and Nafpaktos Textile
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and Nafpaktos is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and Nafpaktos Textile Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nafpaktos Textile 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 Nafpaktos Textile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nafpaktos Textile has no effect on the direction of National Bank i.e., National Bank and Nafpaktos Textile go up and down completely randomly.
Pair Corralation between National Bank and Nafpaktos Textile
Assuming the 90 days trading horizon National Bank of is expected to generate 0.72 times more return on investment than Nafpaktos Textile. However, National Bank of is 1.38 times less risky than Nafpaktos Textile. It trades about 0.27 of its potential returns per unit of risk. Nafpaktos Textile Industry is currently generating about -0.1 per unit of risk. If you would invest 688.00 in National Bank of on September 20, 2024 and sell it today you would earn a total of 83.00 from holding National Bank of or generate 12.06% 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. Nafpaktos Textile Industry
Performance |
| Timeline |
| National Bank |
| Nafpaktos Textile |
National Bank and Nafpaktos Textile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Nafpaktos Textile
The main advantage of trading using opposite National Bank and Nafpaktos Textile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Nafpaktos Textile 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 Nafpaktos Textile will offset losses from the drop in Nafpaktos Textile's long position.| National Bank vs. Eurobank Ergasias Services | National Bank vs. Piraeus Financial Holdings | National Bank vs. Greek Organization of | National Bank vs. Mytilineos SA |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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