Correlation Between STANDARD BANK and NATIONAL BANK
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By analyzing existing cross correlation between STANDARD BANK LIMITED and NATIONAL BANK OF, you can compare the effects of market volatilities on STANDARD BANK 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 STANDARD BANK with a short position of NATIONAL BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of STANDARD BANK and NATIONAL BANK.
Diversification Opportunities for STANDARD BANK and NATIONAL BANK
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between STANDARD and NATIONAL is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding STANDARD BANK LIMITED and NATIONAL BANK OF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NATIONAL BANK and STANDARD 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 STANDARD BANK LIMITED 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 STANDARD BANK i.e., STANDARD BANK and NATIONAL BANK go up and down completely randomly.
Pair Corralation between STANDARD BANK and NATIONAL BANK
If you would invest 549,512 in STANDARD BANK LIMITED on August 30, 2024 and sell it today you would earn a total of 50,497 from holding STANDARD BANK LIMITED or generate 9.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
STANDARD BANK LIMITED vs. NATIONAL BANK OF
Performance |
| Timeline |
| STANDARD BANK LIMITED |
| NATIONAL BANK |
STANDARD BANK and NATIONAL BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STANDARD BANK and NATIONAL BANK
The main advantage of trading using opposite STANDARD BANK and NATIONAL BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STANDARD BANK 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.| STANDARD BANK vs. NBS BANK LIMITED | STANDARD BANK vs. MALAWI PROPERTY INVESTMENT | STANDARD BANK vs. NICO HOLDINGS LIMITED | STANDARD BANK vs. BLANTYRE HOTELS LIMITED |
| NATIONAL BANK vs. NBS BANK LIMITED | NATIONAL BANK vs. MALAWI PROPERTY INVESTMENT | NATIONAL BANK vs. NICO HOLDINGS LIMITED | NATIONAL BANK vs. BLANTYRE HOTELS LIMITED |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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