Correlation Between N Leventeris and National Bank
Can any of the company-specific risk be diversified away by investing in both N Leventeris 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 N Leventeris and National Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between N Leventeris SA and National Bank of, you can compare the effects of market volatilities on N Leventeris 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 N Leventeris with a short position of National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of N Leventeris and National Bank.
Diversification Opportunities for N Leventeris and National Bank
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LEBEP and National is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding N Leventeris SA and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank and N Leventeris 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 N Leventeris SA 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 N Leventeris i.e., N Leventeris and National Bank go up and down completely randomly.
Pair Corralation between N Leventeris and National Bank
Assuming the 90 days trading horizon N Leventeris SA is expected to generate 6.72 times more return on investment than National Bank. However, N Leventeris is 6.72 times more volatile than National Bank of. It trades about 0.18 of its potential returns per unit of risk. National Bank of is currently generating about 0.23 per unit of risk. If you would invest 21.00 in N Leventeris SA on November 5, 2024 and sell it today you would earn a total of 5.00 from holding N Leventeris SA or generate 23.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
N Leventeris SA vs. National Bank of
Performance |
| Timeline |
| N Leventeris SA |
| National Bank |
N Leventeris and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with N Leventeris and National Bank
The main advantage of trading using opposite N Leventeris and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if N Leventeris 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.| N Leventeris vs. Thrace Plastics Holding | N Leventeris vs. Intertech SA Inter | N Leventeris vs. Marfin Investment Group | N Leventeris vs. Eurobank Ergasias Services |
| 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 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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