Correlation Between National Bank and EPSILON HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both National Bank and EPSILON HEALTHCARE 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 EPSILON HEALTHCARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Bank Holdings and EPSILON HEALTHCARE LTD, you can compare the effects of market volatilities on National Bank and EPSILON HEALTHCARE 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 EPSILON HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and EPSILON HEALTHCARE.
Diversification Opportunities for National Bank and EPSILON HEALTHCARE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and EPSILON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Bank Holdings and EPSILON HEALTHCARE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPSILON HEALTHCARE LTD 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 Holdings are associated (or correlated) with EPSILON HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPSILON HEALTHCARE LTD has no effect on the direction of National Bank i.e., National Bank and EPSILON HEALTHCARE go up and down completely randomly.
Pair Corralation between National Bank and EPSILON HEALTHCARE
If you would invest 4,094 in National Bank Holdings on September 1, 2024 and sell it today you would earn a total of 377.00 from holding National Bank Holdings or generate 9.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
National Bank Holdings vs. EPSILON HEALTHCARE LTD
Performance |
| Timeline |
| National Bank Holdings |
| EPSILON HEALTHCARE LTD |
National Bank and EPSILON HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and EPSILON HEALTHCARE
The main advantage of trading using opposite National Bank and EPSILON HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, EPSILON HEALTHCARE 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 EPSILON HEALTHCARE will offset losses from the drop in EPSILON HEALTHCARE's long position.| National Bank vs. HomeToGo SE | National Bank vs. Autohome ADR | National Bank vs. CENTURIA OFFICE REIT | National Bank vs. American Homes 4 |
| EPSILON HEALTHCARE vs. Superior Plus Corp | EPSILON HEALTHCARE vs. Origin Agritech | EPSILON HEALTHCARE vs. Identiv | EPSILON HEALTHCARE vs. INTUITIVE SURGICAL |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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