Correlation Between National Bank and Digitize For
Can any of the company-specific risk be diversified away by investing in both National Bank and Digitize For 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 Digitize For into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Bank and Digitize for Investment, you can compare the effects of market volatilities on National Bank and Digitize For 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 Digitize For. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Digitize For.
Diversification Opportunities for National Bank and Digitize For
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Digitize is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Bank and Digitize for Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digitize for Investment 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 are associated (or correlated) with Digitize For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digitize for Investment has no effect on the direction of National Bank i.e., National Bank and Digitize For go up and down completely randomly.
Pair Corralation between National Bank and Digitize For
Assuming the 90 days trading horizon National Bank is expected to under-perform the Digitize For. But the stock apears to be less risky and, when comparing its historical volatility, National Bank is 9.88 times less risky than Digitize For. The stock trades about -0.05 of its potential returns per unit of risk. The Digitize for Investment is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Digitize for Investment on October 12, 2024 and sell it today you would earn a total of 315.00 from holding Digitize for Investment or generate 1500.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.6% |
| Values | Daily Returns |
National Bank vs. Digitize for Investment
Performance |
| Timeline |
| National Bank |
| Digitize for Investment |
National Bank and Digitize For Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Digitize For
The main advantage of trading using opposite National Bank and Digitize For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Digitize For 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 Digitize For will offset losses from the drop in Digitize For's long position.| National Bank vs. Orascom Construction PLC | National Bank vs. Misr Financial Investments | National Bank vs. Egyptians For Investment | National Bank vs. Misr Chemical Industries |
| Digitize For vs. Misr Oils Soap | Digitize For vs. Faisal Islamic Bank | Digitize For vs. Union National Bank | Digitize For vs. Egyptian Transport |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |