Correlation Between Export Development and National Bank
Can any of the company-specific risk be diversified away by investing in both Export Development and National Bank 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 Export Development and National Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Export Development Bank and National Bank, you can compare the effects of market volatilities on Export Development and National Bank 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 Export Development with a short position of National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Export Development and National Bank.
Diversification Opportunities for Export Development and National Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Export and National is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Export Development Bank and National Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank and Export Development 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 Export Development Bank are associated (or correlated) with National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank has no effect on the direction of Export Development i.e., Export Development and National Bank go up and down completely randomly.
Pair Corralation between Export Development and National Bank
If you would invest 1,300 in National Bank on October 12, 2024 and sell it today you would earn a total of 0.00 from holding National Bank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Export Development Bank vs. National Bank
Performance |
| Timeline |
| Export Development Bank |
| National Bank |
Export Development and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Export Development and National Bank
The main advantage of trading using opposite Export Development and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Export Development position performs unexpectedly, National Bank 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 National Bank will offset losses from the drop in National Bank's long position.| Export Development vs. Edita Food Industries | Export Development vs. El Nasr Clothes | Export Development vs. Juhayna Food Industries | Export Development vs. Arabian Food Industries |
| National Bank vs. Orascom Construction PLC | National Bank vs. Misr Financial Investments | National Bank vs. Egyptians For Investment | National Bank vs. Misr Chemical Industries |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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