Correlation Between National Australia and EVE Health
Can any of the company-specific risk be diversified away by investing in both National Australia and EVE Health 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 Australia and EVE Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Australia Bank and EVE Health Group, you can compare the effects of market volatilities on National Australia and EVE Health 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 Australia with a short position of EVE Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Australia and EVE Health.
Diversification Opportunities for National Australia and EVE Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and EVE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Australia Bank and EVE Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVE Health Group and National Australia 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 Australia Bank are associated (or correlated) with EVE Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVE Health Group has no effect on the direction of National Australia i.e., National Australia and EVE Health go up and down completely randomly.
Pair Corralation between National Australia and EVE Health
If you would invest 10,549 in National Australia Bank on August 29, 2024 and sell it today you would earn a total of 43.00 from holding National Australia Bank or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
National Australia Bank vs. EVE Health Group
Performance |
| Timeline |
| National Australia Bank |
| EVE Health Group |
National Australia and EVE Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Australia and EVE Health
The main advantage of trading using opposite National Australia and EVE Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Australia position performs unexpectedly, EVE Health 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 EVE Health will offset losses from the drop in EVE Health's long position.| National Australia vs. EVE Health Group | National Australia vs. Austco Healthcare | National Australia vs. Aurelia Metals | National Australia vs. Dicker Data |
| EVE Health vs. Champion Iron | EVE Health vs. Ridley | EVE Health vs. Peel Mining | EVE Health vs. Australian Dairy Farms |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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