Correlation Between NATIONAL BANK and SUNBIRD HOTELS
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By analyzing existing cross correlation between NATIONAL BANK OF and SUNBIRD HOTELS TOURISM, you can compare the effects of market volatilities on NATIONAL BANK and SUNBIRD HOTELS 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 SUNBIRD HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of NATIONAL BANK and SUNBIRD HOTELS.
Diversification Opportunities for NATIONAL BANK and SUNBIRD HOTELS
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between NATIONAL and SUNBIRD is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding NATIONAL BANK OF and SUNBIRD HOTELS TOURISM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNBIRD HOTELS TOURISM 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 SUNBIRD HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNBIRD HOTELS TOURISM has no effect on the direction of NATIONAL BANK i.e., NATIONAL BANK and SUNBIRD HOTELS go up and down completely randomly.
Pair Corralation between NATIONAL BANK and SUNBIRD HOTELS
Assuming the 90 days trading horizon NATIONAL BANK OF is expected to generate 1.12 times more return on investment than SUNBIRD HOTELS. However, NATIONAL BANK is 1.12 times more volatile than SUNBIRD HOTELS TOURISM. It trades about 0.16 of its potential returns per unit of risk. SUNBIRD HOTELS TOURISM is currently generating about 0.13 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NATIONAL BANK OF vs. SUNBIRD HOTELS TOURISM
Performance |
| Timeline |
| NATIONAL BANK |
| SUNBIRD HOTELS TOURISM |
NATIONAL BANK and SUNBIRD HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NATIONAL BANK and SUNBIRD HOTELS
The main advantage of trading using opposite NATIONAL BANK and SUNBIRD HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NATIONAL BANK position performs unexpectedly, SUNBIRD HOTELS 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 SUNBIRD HOTELS will offset losses from the drop in SUNBIRD HOTELS'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 |
| SUNBIRD HOTELS vs. STANDARD BANK LIMITED | SUNBIRD HOTELS vs. NBS BANK LIMITED | SUNBIRD HOTELS vs. MALAWI PROPERTY INVESTMENT | SUNBIRD HOTELS vs. NATIONAL INVESTMENT TRUST |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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