Correlation Between Mytilineos and National Bank
Can any of the company-specific risk be diversified away by investing in both Mytilineos 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 Mytilineos and National Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mytilineos SA and National Bank of, you can compare the effects of market volatilities on Mytilineos 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 Mytilineos with a short position of National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mytilineos and National Bank.
Diversification Opportunities for Mytilineos and National Bank
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mytilineos and National is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mytilineos 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 Mytilineos 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 Mytilineos 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 Mytilineos i.e., Mytilineos and National Bank go up and down completely randomly.
Pair Corralation between Mytilineos and National Bank
Assuming the 90 days trading horizon Mytilineos SA is expected to under-perform the National Bank. But the stock apears to be less risky and, when comparing its historical volatility, Mytilineos SA is 1.11 times less risky than National Bank. The stock trades about -0.12 of its potential returns per unit of risk. The National Bank of is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 732.00 in National Bank of on August 24, 2024 and sell it today you would lose (28.00) from holding National Bank of or give up 3.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mytilineos SA vs. National Bank of
Performance |
| Timeline |
| Mytilineos SA |
| National Bank |
Mytilineos and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mytilineos and National Bank
The main advantage of trading using opposite Mytilineos and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mytilineos 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.| Mytilineos vs. Viohalco SA | Mytilineos vs. National Bank of | Mytilineos vs. EL D Mouzakis | Mytilineos vs. Lampsa Hellenic Hotels |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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