Correlation Between National Bank and Vogiatzoglou Systems
Can any of the company-specific risk be diversified away by investing in both National Bank and Vogiatzoglou Systems 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 Vogiatzoglou Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Bank of and Vogiatzoglou Systems SA, you can compare the effects of market volatilities on National Bank and Vogiatzoglou Systems 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 Vogiatzoglou Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Vogiatzoglou Systems.
Diversification Opportunities for National Bank and Vogiatzoglou Systems
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between National and Vogiatzoglou is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and Vogiatzoglou Systems SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vogiatzoglou Systems 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 Vogiatzoglou Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vogiatzoglou Systems has no effect on the direction of National Bank i.e., National Bank and Vogiatzoglou Systems go up and down completely randomly.
Pair Corralation between National Bank and Vogiatzoglou Systems
Assuming the 90 days trading horizon National Bank of is expected to generate 0.85 times more return on investment than Vogiatzoglou Systems. However, National Bank of is 1.18 times less risky than Vogiatzoglou Systems. It trades about -0.05 of its potential returns per unit of risk. Vogiatzoglou Systems SA is currently generating about -0.07 per unit of risk. If you would invest 769.00 in National Bank of on September 5, 2024 and sell it today you would lose (49.00) from holding National Bank of or give up 6.37% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
National Bank of vs. Vogiatzoglou Systems SA
Performance |
Timeline |
National Bank |
Vogiatzoglou Systems |
National Bank and Vogiatzoglou Systems Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with National Bank and Vogiatzoglou Systems
The main advantage of trading using opposite National Bank and Vogiatzoglou Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Vogiatzoglou Systems 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 Vogiatzoglou Systems will offset losses from the drop in Vogiatzoglou Systems' long position.National Bank vs. EL D Mouzakis | National Bank vs. Lampsa Hellenic Hotels | National Bank vs. N Leventeris SA | National Bank vs. Eurobank Ergasias Services |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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