Correlation Between National Bank and Public Power
Can any of the company-specific risk be diversified away by investing in both National Bank and Public Power 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 Public Power 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 Public Power, you can compare the effects of market volatilities on National Bank and Public Power 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 Public Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Public Power.
Diversification Opportunities for National Bank and Public Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Public is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and Public Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Power 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 Public Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Power has no effect on the direction of National Bank i.e., National Bank and Public Power go up and down completely randomly.
Pair Corralation between National Bank and Public Power
Assuming the 90 days trading horizon National Bank of is expected to under-perform the Public Power. In addition to that, National Bank is 1.03 times more volatile than Public Power. It trades about -0.17 of its total potential returns per unit of risk. Public Power is currently generating about -0.02 per unit of volatility. If you would invest 1,191 in Public Power on August 28, 2024 and sell it today you would lose (9.00) from holding Public Power or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Bank of vs. Public Power
Performance |
| Timeline |
| National Bank |
| Public Power |
National Bank and Public Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Public Power
The main advantage of trading using opposite National Bank and Public Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Public Power 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 Public Power will offset losses from the drop in Public Power'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 |
| Public Power vs. National Bank of | Public Power vs. EL D Mouzakis | Public Power vs. Lampsa Hellenic Hotels | Public Power vs. Eurobank Ergasias Services |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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