Correlation Between Impax Asset and National Atomic
Can any of the company-specific risk be diversified away by investing in both Impax Asset and National Atomic 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 Impax Asset and National Atomic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impax Asset Management and National Atomic Co, you can compare the effects of market volatilities on Impax Asset and National Atomic 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 Impax Asset with a short position of National Atomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impax Asset and National Atomic.
Diversification Opportunities for Impax Asset and National Atomic
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Impax and National is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Impax Asset Management and National Atomic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Atomic and Impax Asset 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 Impax Asset Management are associated (or correlated) with National Atomic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Atomic has no effect on the direction of Impax Asset i.e., Impax Asset and National Atomic go up and down completely randomly.
Pair Corralation between Impax Asset and National Atomic
Assuming the 90 days trading horizon Impax Asset Management is expected to under-perform the National Atomic. In addition to that, Impax Asset is 1.12 times more volatile than National Atomic Co. It trades about -0.04 of its total potential returns per unit of risk. National Atomic Co is currently generating about 0.05 per unit of volatility. If you would invest 2,415 in National Atomic Co on September 14, 2024 and sell it today you would earn a total of 1,435 from holding National Atomic Co or generate 59.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impax Asset Management vs. National Atomic Co
Performance |
| Timeline |
| Impax Asset Management |
| National Atomic |
Impax Asset and National Atomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impax Asset and National Atomic
The main advantage of trading using opposite Impax Asset and National Atomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impax Asset position performs unexpectedly, National Atomic 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 Atomic will offset losses from the drop in National Atomic's long position.| Impax Asset vs. Catalyst Media Group | Impax Asset vs. CATLIN GROUP | Impax Asset vs. Tamburi Investment Partners | Impax Asset vs. Magnora ASA |
| National Atomic vs. Gamma Communications PLC | National Atomic vs. Impax Asset Management | National Atomic vs. Aeorema Communications Plc | National Atomic vs. Taiwan Semiconductor Manufacturing |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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