Correlation Between National Bank and HEIA
Can any of the company-specific risk be diversified away by investing in both National Bank and HEIA 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 HEIA 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 HEIA, you can compare the effects of market volatilities on National Bank and HEIA 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 HEIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and HEIA.
Diversification Opportunities for National Bank and HEIA
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between National and HEIA is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding National Bank Holdings and HEIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEIA 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 HEIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEIA has no effect on the direction of National Bank i.e., National Bank and HEIA go up and down completely randomly.
Pair Corralation between National Bank and HEIA
If you would invest 4,020 in National Bank Holdings on August 29, 2024 and sell it today you would earn a total of 600.00 from holding National Bank Holdings or generate 14.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.35% |
| Values | Daily Returns |
National Bank Holdings vs. HEIA
Performance |
| Timeline |
| National Bank Holdings |
| HEIA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
National Bank and HEIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and HEIA
The main advantage of trading using opposite National Bank and HEIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, HEIA 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 HEIA will offset losses from the drop in HEIA's long position.| National Bank vs. Austevoll Seafood ASA | National Bank vs. Webster Financial | National Bank vs. CONAGRA FOODS | National Bank vs. Beyond Meat |
| HEIA vs. Merit Medical Systems | HEIA vs. Apollo Medical Holdings | HEIA vs. MEDICAL FACILITIES NEW | HEIA vs. SBM OFFSHORE |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |