Correlation Between National Bank and Coloplast A/S
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By analyzing existing cross correlation between National Bank Holdings and Coloplast AS, you can compare the effects of market volatilities on National Bank and Coloplast A/S 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 Coloplast A/S. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Coloplast A/S.
Diversification Opportunities for National Bank and Coloplast A/S
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between National and Coloplast is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding National Bank Holdings and Coloplast AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coloplast A/S 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 Coloplast A/S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coloplast A/S has no effect on the direction of National Bank i.e., National Bank and Coloplast A/S go up and down completely randomly.
Pair Corralation between National Bank and Coloplast A/S
Assuming the 90 days horizon National Bank is expected to generate 4.83 times less return on investment than Coloplast A/S. But when comparing it to its historical volatility, National Bank Holdings is 2.84 times less risky than Coloplast A/S. It trades about 0.02 of its potential returns per unit of risk. Coloplast AS is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 9,190 in Coloplast AS on September 3, 2024 and sell it today you would earn a total of 2,630 from holding Coloplast AS or generate 28.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.23% |
| Values | Daily Returns |
National Bank Holdings vs. Coloplast AS
Performance |
| Timeline |
| National Bank Holdings |
| Coloplast A/S |
National Bank and Coloplast A/S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Coloplast A/S
The main advantage of trading using opposite National Bank and Coloplast A/S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Coloplast A/S 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 Coloplast A/S will offset losses from the drop in Coloplast A/S's long position.| National Bank vs. NXP Semiconductors NV | National Bank vs. ON SEMICONDUCTOR | National Bank vs. Tower One Wireless | National Bank vs. SK TELECOM TDADR |
| Coloplast A/S vs. Citic Telecom International | Coloplast A/S vs. COMPUTERSHARE | Coloplast A/S vs. Ribbon Communications | Coloplast A/S vs. GRIFFIN MINING 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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