Correlation Between Public Power and National Bank
Can any of the company-specific risk be diversified away by investing in both Public Power and National Bank 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 Public Power and National Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Power and National Bank of, you can compare the effects of market volatilities on Public Power and National 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 Public Power with a short position of National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Power and National Bank.
Diversification Opportunities for Public Power and National Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Public and National is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Public Power and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank and Public Power 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 Public Power are associated (or correlated) with National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank has no effect on the direction of Public Power i.e., Public Power and National Bank go up and down completely randomly.
Pair Corralation between Public Power and National Bank
Assuming the 90 days trading horizon Public Power is expected to generate 0.97 times more return on investment than National Bank. However, Public Power is 1.03 times less risky than National Bank. It trades about -0.02 of its potential returns per unit of risk. National Bank of is currently generating about -0.17 per unit of risk. If you would invest 1,191 in Public Power on August 28, 2024 and sell it today you would lose (9.00) from holding Public Power or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Public Power vs. National Bank of
Performance |
| Timeline |
| Public Power |
| National Bank |
Public Power and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Power and National Bank
The main advantage of trading using opposite Public Power and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Power position performs unexpectedly, National 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 National Bank will offset losses from the drop in National Bank's long position.| Public Power vs. National Bank of | Public Power vs. EL D Mouzakis | Public Power vs. Lampsa Hellenic Hotels | Public Power vs. Eurobank Ergasias Services |
| National Bank vs. Alpha Services and | National Bank vs. Eurobank Ergasias Services | National Bank vs. Piraeus Financial Holdings | National Bank vs. Greek Organization of |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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