Correlation Between Grays Leasing and National Bank
Can any of the company-specific risk be diversified away by investing in both Grays Leasing 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 Grays Leasing and National Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grays Leasing and National Bank of, you can compare the effects of market volatilities on Grays Leasing 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 Grays Leasing with a short position of National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grays Leasing and National Bank.
Diversification Opportunities for Grays Leasing and National Bank
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grays and National is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Grays Leasing and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank and Grays Leasing 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 Grays Leasing 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 Grays Leasing i.e., Grays Leasing and National Bank go up and down completely randomly.
Pair Corralation between Grays Leasing and National Bank
Assuming the 90 days trading horizon Grays Leasing is expected to generate 3.1 times more return on investment than National Bank. However, Grays Leasing is 3.1 times more volatile than National Bank of. It trades about 0.06 of its potential returns per unit of risk. National Bank of is currently generating about 0.11 per unit of risk. If you would invest 305.00 in Grays Leasing on September 2, 2024 and sell it today you would earn a total of 137.00 from holding Grays Leasing or generate 44.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 46.3% |
| Values | Daily Returns |
Grays Leasing vs. National Bank of
Performance |
| Timeline |
| Grays Leasing |
| National Bank |
Grays Leasing and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grays Leasing and National Bank
The main advantage of trading using opposite Grays Leasing and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grays Leasing 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.| Grays Leasing vs. MCB Investment Manag | Grays Leasing vs. 786 Investment Limited | Grays Leasing vs. Air Link Communication | Grays Leasing vs. JS Investments |
| National Bank vs. Masood Textile Mills | National Bank vs. Fauji Foods | National Bank vs. KSB Pumps | National Bank vs. Mari Petroleum |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |