Correlation Between National Bank and Viq Solutions
Can any of the company-specific risk be diversified away by investing in both National Bank and Viq Solutions 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 Bank and Viq Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Bank of and Viq Solutions, you can compare the effects of market volatilities on National Bank and Viq Solutions 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 Bank with a short position of Viq Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Viq Solutions.
Diversification Opportunities for National Bank and Viq Solutions
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and Viq is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and Viq Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viq Solutions and National Bank 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 Bank of are associated (or correlated) with Viq Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viq Solutions has no effect on the direction of National Bank i.e., National Bank and Viq Solutions go up and down completely randomly.
Pair Corralation between National Bank and Viq Solutions
Assuming the 90 days trading horizon National Bank is expected to generate 25.36 times less return on investment than Viq Solutions. But when comparing it to its historical volatility, National Bank of is 57.5 times less risky than Viq Solutions. It trades about 0.15 of its potential returns per unit of risk. Viq Solutions is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Viq Solutions on November 2, 2024 and sell it today you would earn a total of 1.00 from holding Viq Solutions or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Bank of vs. Viq Solutions
Performance |
| Timeline |
| National Bank |
| Viq Solutions |
National Bank and Viq Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Viq Solutions
The main advantage of trading using opposite National Bank and Viq Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Viq Solutions 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 Viq Solutions will offset losses from the drop in Viq Solutions' long position.| National Bank vs. Partners Value Investments | National Bank vs. NeuPath Health | National Bank vs. Nova Leap Health | National Bank vs. CVS HEALTH CDR |
| Viq Solutions vs. Lite Access Technologies | Viq Solutions vs. Braille Energy Systems | Viq Solutions vs. Solar Alliance Energy | Viq Solutions vs. NEXE Innovations |
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 CEOs Directory module to screen CEOs from public companies around the world.
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