Correlation Between Lampsa Hellenic and National Bank
Can any of the company-specific risk be diversified away by investing in both Lampsa Hellenic 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 Lampsa Hellenic and National Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lampsa Hellenic Hotels and National Bank of, you can compare the effects of market volatilities on Lampsa Hellenic 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 Lampsa Hellenic with a short position of National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lampsa Hellenic and National Bank.
Diversification Opportunities for Lampsa Hellenic and National Bank
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lampsa and National is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Lampsa Hellenic Hotels and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank and Lampsa Hellenic 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 Lampsa Hellenic Hotels 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 Lampsa Hellenic i.e., Lampsa Hellenic and National Bank go up and down completely randomly.
Pair Corralation between Lampsa Hellenic and National Bank
Assuming the 90 days trading horizon Lampsa Hellenic Hotels is expected to generate 0.51 times more return on investment than National Bank. However, Lampsa Hellenic Hotels is 1.97 times less risky than National Bank. It trades about 0.13 of its potential returns per unit of risk. National Bank of is currently generating about 0.06 per unit of risk. If you would invest 2,048 in Lampsa Hellenic Hotels on August 27, 2024 and sell it today you would earn a total of 1,692 from holding Lampsa Hellenic Hotels or generate 82.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lampsa Hellenic Hotels vs. National Bank of
Performance |
| Timeline |
| Lampsa Hellenic Hotels |
| National Bank |
Lampsa Hellenic and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lampsa Hellenic and National Bank
The main advantage of trading using opposite Lampsa Hellenic and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lampsa Hellenic 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.| Lampsa Hellenic vs. National Bank of | Lampsa Hellenic vs. N Leventeris SA | Lampsa Hellenic vs. Eurobank Ergasias Services | Lampsa Hellenic vs. Vogiatzoglou Systems SA |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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