Correlation Between MCB GROUP and NATIONAL INVESTMENT
Specify exactly 2 symbols:
By analyzing existing cross correlation between MCB GROUP LTD and NATIONAL INVESTMENT TRUST, you can compare the effects of market volatilities on MCB GROUP and NATIONAL INVESTMENT 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 MCB GROUP with a short position of NATIONAL INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCB GROUP and NATIONAL INVESTMENT.
Diversification Opportunities for MCB GROUP and NATIONAL INVESTMENT
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between MCB and NATIONAL is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding MCB GROUP LTD and NATIONAL INVESTMENT TRUST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NATIONAL INVESTMENT TRUST and MCB GROUP 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 MCB GROUP LTD are associated (or correlated) with NATIONAL INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NATIONAL INVESTMENT TRUST has no effect on the direction of MCB GROUP i.e., MCB GROUP and NATIONAL INVESTMENT go up and down completely randomly.
Pair Corralation between MCB GROUP and NATIONAL INVESTMENT
Assuming the 90 days trading horizon MCB GROUP LTD is expected to under-perform the NATIONAL INVESTMENT. But the stock apears to be less risky and, when comparing its historical volatility, MCB GROUP LTD is 2.08 times less risky than NATIONAL INVESTMENT. The stock trades about -0.09 of its potential returns per unit of risk. The NATIONAL INVESTMENT TRUST is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,150 in NATIONAL INVESTMENT TRUST on August 31, 2024 and sell it today you would lose (50.00) from holding NATIONAL INVESTMENT TRUST or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCB GROUP LTD vs. NATIONAL INVESTMENT TRUST
Performance |
| Timeline |
| MCB GROUP LTD |
| NATIONAL INVESTMENT TRUST |
MCB GROUP and NATIONAL INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCB GROUP and NATIONAL INVESTMENT
The main advantage of trading using opposite MCB GROUP and NATIONAL INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCB GROUP position performs unexpectedly, NATIONAL INVESTMENT 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 INVESTMENT will offset losses from the drop in NATIONAL INVESTMENT's long position.| MCB GROUP vs. FINCORP INVESTMENT LTD | MCB GROUP vs. PSG FINANCIAL SERVICES | MCB GROUP vs. BEAU VALLON HOSPITAL | MCB GROUP vs. MAURITIUS CHEMICAL FERTILIZER |
| NATIONAL INVESTMENT vs. PSG FINANCIAL SERVICES | NATIONAL INVESTMENT vs. ASTORIA INVESTMENT LTD | NATIONAL INVESTMENT vs. AGAPE GLOBAL INVESTMENTS | NATIONAL INVESTMENT vs. LOTTOTECH 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |