Correlation Between National Bank and Thessaloniki Port
Can any of the company-specific risk be diversified away by investing in both National Bank and Thessaloniki Port 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 Thessaloniki Port 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 Thessaloniki Port Authority, you can compare the effects of market volatilities on National Bank and Thessaloniki Port 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 Thessaloniki Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Thessaloniki Port.
Diversification Opportunities for National Bank and Thessaloniki Port
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between National and Thessaloniki is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and Thessaloniki Port Authority in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thessaloniki Port 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 Thessaloniki Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thessaloniki Port has no effect on the direction of National Bank i.e., National Bank and Thessaloniki Port go up and down completely randomly.
Pair Corralation between National Bank and Thessaloniki Port
Assuming the 90 days trading horizon National Bank of is expected to generate 1.39 times more return on investment than Thessaloniki Port. However, National Bank is 1.39 times more volatile than Thessaloniki Port Authority. It trades about 0.07 of its potential returns per unit of risk. Thessaloniki Port Authority is currently generating about 0.03 per unit of risk. If you would invest 455.00 in National Bank of on November 5, 2024 and sell it today you would earn a total of 383.00 from holding National Bank of or generate 84.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Bank of vs. Thessaloniki Port Authority
Performance |
| Timeline |
| National Bank |
| Thessaloniki Port |
National Bank and Thessaloniki Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Thessaloniki Port
The main advantage of trading using opposite National Bank and Thessaloniki Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Thessaloniki Port 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 Thessaloniki Port will offset losses from the drop in Thessaloniki Port's 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 |
| Thessaloniki Port vs. Piraeus Financial Holdings | Thessaloniki Port vs. Elvalhalcor Hellenic Copper | Thessaloniki Port vs. Logismos Information Systems | Thessaloniki Port vs. Optima bank 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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