Correlation Between GRENKELEASING Dusseldorf and National Bank
Can any of the company-specific risk be diversified away by investing in both GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf and National Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRENKELEASING Dusseldorf and National Bank Holdings, you can compare the effects of market volatilities on GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf with a short position of National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRENKELEASING Dusseldorf and National Bank.
Diversification Opportunities for GRENKELEASING Dusseldorf and National Bank
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GRENKELEASING and National is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding GRENKELEASING Dusseldorf and National Bank Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank Holdings and GRENKELEASING Dusseldorf 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 GRENKELEASING Dusseldorf 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 Holdings has no effect on the direction of GRENKELEASING Dusseldorf i.e., GRENKELEASING Dusseldorf and National Bank go up and down completely randomly.
Pair Corralation between GRENKELEASING Dusseldorf and National Bank
Assuming the 90 days trading horizon GRENKELEASING Dusseldorf is expected to generate 0.91 times more return on investment than National Bank. However, GRENKELEASING Dusseldorf is 1.1 times less risky than National Bank. It trades about 0.25 of its potential returns per unit of risk. National Bank Holdings is currently generating about -0.07 per unit of risk. If you would invest 1,536 in GRENKELEASING Dusseldorf on October 28, 2024 and sell it today you would earn a total of 148.00 from holding GRENKELEASING Dusseldorf or generate 9.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRENKELEASING Dusseldorf vs. National Bank Holdings
Performance |
| Timeline |
| GRENKELEASING Dusseldorf |
| National Bank Holdings |
GRENKELEASING Dusseldorf and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRENKELEASING Dusseldorf and National Bank
The main advantage of trading using opposite GRENKELEASING Dusseldorf and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRENKELEASING Dusseldorf 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.| GRENKELEASING Dusseldorf vs. Apple Inc | GRENKELEASING Dusseldorf vs. Apple Inc | GRENKELEASING Dusseldorf vs. Apple Inc | GRENKELEASING Dusseldorf vs. Apple Inc |
| National Bank vs. Air Lease | National Bank vs. FUYO GENERAL LEASE | National Bank vs. Wayside Technology Group | National Bank vs. Vishay Intertechnology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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