Correlation Between Intralot and National Bank
Can any of the company-specific risk be diversified away by investing in both Intralot 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 Intralot and National Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intralot SA Integrated and National Bank of, you can compare the effects of market volatilities on Intralot 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 Intralot with a short position of National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intralot and National Bank.
Diversification Opportunities for Intralot and National Bank
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intralot and National is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Intralot SA Integrated and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank and Intralot 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 Intralot SA Integrated 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 Intralot i.e., Intralot and National Bank go up and down completely randomly.
Pair Corralation between Intralot and National Bank
Assuming the 90 days trading horizon Intralot SA Integrated is expected to generate 1.33 times more return on investment than National Bank. However, Intralot is 1.33 times more volatile than National Bank of. It trades about 0.05 of its potential returns per unit of risk. National Bank of is currently generating about 0.05 per unit of risk. If you would invest 69.00 in Intralot SA Integrated on August 27, 2024 and sell it today you would earn a total of 20.00 from holding Intralot SA Integrated or generate 28.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intralot SA Integrated vs. National Bank of
Performance |
| Timeline |
| Intralot SA Integrated |
| National Bank |
Intralot and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intralot and National Bank
The main advantage of trading using opposite Intralot and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intralot 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.| Intralot vs. Mytilineos SA | Intralot vs. Hellenic Telecommunications Organization | Intralot vs. Motor Oil Corinth | Intralot vs. Alpha Services and |
| National Bank vs. Alpha Services and | National Bank vs. Eurobank Ergasias Services | National Bank vs. Piraeus Financial Holdings | National Bank vs. Greek Organization of |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |