Correlation Between National Atomic and Lendinvest PLC
Can any of the company-specific risk be diversified away by investing in both National Atomic and Lendinvest PLC 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 National Atomic and Lendinvest PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Atomic Co and Lendinvest PLC, you can compare the effects of market volatilities on National Atomic and Lendinvest PLC 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 National Atomic with a short position of Lendinvest PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Atomic and Lendinvest PLC.
Diversification Opportunities for National Atomic and Lendinvest PLC
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between National and Lendinvest is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding National Atomic Co and Lendinvest PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendinvest PLC and National Atomic 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 National Atomic Co are associated (or correlated) with Lendinvest PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendinvest PLC has no effect on the direction of National Atomic i.e., National Atomic and Lendinvest PLC go up and down completely randomly.
Pair Corralation between National Atomic and Lendinvest PLC
Assuming the 90 days trading horizon National Atomic Co is expected to generate 1.53 times more return on investment than Lendinvest PLC. However, National Atomic is 1.53 times more volatile than Lendinvest PLC. It trades about 0.01 of its potential returns per unit of risk. Lendinvest PLC is currently generating about -0.04 per unit of risk. If you would invest 4,090 in National Atomic Co on September 1, 2024 and sell it today you would lose (45.00) from holding National Atomic Co or give up 1.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Atomic Co vs. Lendinvest PLC
Performance |
| Timeline |
| National Atomic |
| Lendinvest PLC |
National Atomic and Lendinvest PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Atomic and Lendinvest PLC
The main advantage of trading using opposite National Atomic and Lendinvest PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Atomic position performs unexpectedly, Lendinvest PLC 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 Lendinvest PLC will offset losses from the drop in Lendinvest PLC's long position.| National Atomic vs. Ashtead Technology Holdings | National Atomic vs. Concurrent Technologies Plc | National Atomic vs. Ross Stores | National Atomic vs. Lendinvest PLC |
| Lendinvest PLC vs. Samsung Electronics Co | Lendinvest PLC vs. Samsung Electronics Co | Lendinvest PLC vs. Toyota Motor Corp | Lendinvest PLC vs. Reliance Industries Ltd |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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