Correlation Between National Bank and VIS Containers
Can any of the company-specific risk be diversified away by investing in both National Bank and VIS Containers 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 VIS Containers 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 VIS Containers Manufacturing, you can compare the effects of market volatilities on National Bank and VIS Containers 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 VIS Containers. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and VIS Containers.
Diversification Opportunities for National Bank and VIS Containers
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and VIS is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and VIS Containers Manufacturing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIS Containers Manuf 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 VIS Containers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIS Containers Manuf has no effect on the direction of National Bank i.e., National Bank and VIS Containers go up and down completely randomly.
Pair Corralation between National Bank and VIS Containers
Assuming the 90 days trading horizon National Bank is expected to generate 1.16 times less return on investment than VIS Containers. But when comparing it to its historical volatility, National Bank of is 3.2 times less risky than VIS Containers. It trades about 0.09 of its potential returns per unit of risk. VIS Containers Manufacturing is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 12.00 in VIS Containers Manufacturing on September 13, 2024 and sell it today you would earn a total of 2.00 from holding VIS Containers Manufacturing or generate 16.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 86.73% |
Values | Daily Returns |
National Bank of vs. VIS Containers Manufacturing
Performance |
Timeline |
National Bank |
VIS Containers Manuf |
National Bank and VIS Containers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with National Bank and VIS Containers
The main advantage of trading using opposite National Bank and VIS Containers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, VIS Containers 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 VIS Containers will offset losses from the drop in VIS Containers' 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 |
VIS Containers vs. Thrace Plastics Holding | VIS Containers vs. Flexopack Socit Anonyme | VIS Containers vs. National Bank of | VIS Containers vs. Lampsa Hellenic Hotels |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |