Correlation Between National Bank and Malayan Banking
Can any of the company-specific risk be diversified away by investing in both National Bank and Malayan Banking 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 Malayan Banking 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 Malayan Banking Berhad, you can compare the effects of market volatilities on National Bank and Malayan Banking 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 Malayan Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Malayan Banking.
Diversification Opportunities for National Bank and Malayan Banking
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Malayan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and Malayan Banking Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malayan Banking Berhad 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 Malayan Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malayan Banking Berhad has no effect on the direction of National Bank i.e., National Bank and Malayan Banking go up and down completely randomly.
Pair Corralation between National Bank and Malayan Banking
If you would invest 804.00 in National Bank of on October 22, 2024 and sell it today you would earn a total of 36.00 from holding National Bank of or generate 4.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
National Bank of vs. Malayan Banking Berhad
Performance |
| Timeline |
| National Bank |
| Malayan Banking Berhad |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
National Bank and Malayan Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Malayan Banking
The main advantage of trading using opposite National Bank and Malayan Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Malayan Banking 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 Malayan Banking will offset losses from the drop in Malayan Banking's long position.| National Bank vs. Alpha Bank SA | National Bank vs. Eurobank Ergasias SA | National Bank vs. Piraeus Bank SA | National Bank vs. PT Bank Central |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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