Correlation Between NATIONAL BANK and STANDARD BANK
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By analyzing existing cross correlation between NATIONAL BANK OF and STANDARD BANK LIMITED, you can compare the effects of market volatilities on NATIONAL BANK and STANDARD BANK 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 STANDARD BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of NATIONAL BANK and STANDARD BANK.
Diversification Opportunities for NATIONAL BANK and STANDARD BANK
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NATIONAL and STANDARD is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding NATIONAL BANK OF and STANDARD BANK LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANDARD BANK LIMITED 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 STANDARD BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANDARD BANK LIMITED has no effect on the direction of NATIONAL BANK i.e., NATIONAL BANK and STANDARD BANK go up and down completely randomly.
Pair Corralation between NATIONAL BANK and STANDARD BANK
Assuming the 90 days trading horizon NATIONAL BANK OF is expected to generate 1.33 times more return on investment than STANDARD BANK. However, NATIONAL BANK is 1.33 times more volatile than STANDARD BANK LIMITED. It trades about 0.16 of its potential returns per unit of risk. STANDARD BANK LIMITED is currently generating about 0.18 per unit of risk. If you would invest 160,005 in NATIONAL BANK OF on November 19, 2024 and sell it today you would earn a total of 453,327 from holding NATIONAL BANK OF or generate 283.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NATIONAL BANK OF vs. STANDARD BANK LIMITED
Performance |
| Timeline |
| NATIONAL BANK |
| STANDARD BANK LIMITED |
NATIONAL BANK and STANDARD BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NATIONAL BANK and STANDARD BANK
The main advantage of trading using opposite NATIONAL BANK and STANDARD BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NATIONAL BANK position performs unexpectedly, STANDARD BANK 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 STANDARD BANK will offset losses from the drop in STANDARD BANK's long position.| NATIONAL BANK vs. NATIONAL INVESTMENT TRUST | NATIONAL BANK vs. FDH BANK PLC | NATIONAL BANK vs. MALAWI PROPERTY INVESTMENT | NATIONAL BANK vs. STANDARD BANK LIMITED |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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