Correlation Between National Bank and Speed Medical
Can any of the company-specific risk be diversified away by investing in both National Bank and Speed Medical 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 Speed Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Bank and Speed Medical, you can compare the effects of market volatilities on National Bank and Speed Medical 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 Speed Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Speed Medical.
Diversification Opportunities for National Bank and Speed Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Speed is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Bank and Speed Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Speed Medical 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 Speed Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Speed Medical has no effect on the direction of National Bank i.e., National Bank and Speed Medical go up and down completely randomly.
Pair Corralation between National Bank and Speed Medical
Assuming the 90 days trading horizon National Bank is expected to under-perform the Speed Medical. But the stock apears to be less risky and, when comparing its historical volatility, National Bank is 1.91 times less risky than Speed Medical. The stock trades about -0.05 of its potential returns per unit of risk. The Speed Medical is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 43.00 in Speed Medical on September 12, 2024 and sell it today you would lose (7.00) from holding Speed Medical or give up 16.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
National Bank vs. Speed Medical
Performance |
| Timeline |
| National Bank |
| Speed Medical |
National Bank and Speed Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and Speed Medical
The main advantage of trading using opposite National Bank and Speed Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Speed Medical 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 Speed Medical will offset losses from the drop in Speed Medical's long position.| National Bank vs. Paint Chemicals Industries | National Bank vs. Reacap Financial Investments | National Bank vs. Egyptians For Investment | National Bank vs. Misr Oils Soap |
| Speed Medical vs. Paint Chemicals Industries | Speed Medical vs. Reacap Financial Investments | Speed Medical vs. Egyptians For Investment | Speed Medical vs. Misr Oils Soap |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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