Correlation Between TELES Informationstech and National Bank
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By analyzing existing cross correlation between TELES Informationstechnologien AG and National Bank Holdings, you can compare the effects of market volatilities on TELES Informationstech 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 TELES Informationstech with a short position of National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of TELES Informationstech and National Bank.
Diversification Opportunities for TELES Informationstech and National Bank
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TELES and National is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding TELES Informationstechnologien and National Bank Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank Holdings and TELES Informationstech 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 TELES Informationstechnologien AG 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 Holdings has no effect on the direction of TELES Informationstech i.e., TELES Informationstech and National Bank go up and down completely randomly.
Pair Corralation between TELES Informationstech and National Bank
Assuming the 90 days trading horizon TELES Informationstechnologien AG is expected to under-perform the National Bank. In addition to that, TELES Informationstech is 1.18 times more volatile than National Bank Holdings. It trades about -0.11 of its total potential returns per unit of risk. National Bank Holdings is currently generating about 0.07 per unit of volatility. If you would invest 3,334 in National Bank Holdings on September 25, 2024 and sell it today you would earn a total of 686.00 from holding National Bank Holdings or generate 20.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
TELES Informationstechnologien vs. National Bank Holdings
Performance |
Timeline |
TELES Informationstech |
National Bank Holdings |
TELES Informationstech and National Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TELES Informationstech and National Bank
The main advantage of trading using opposite TELES Informationstech and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TELES Informationstech 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.TELES Informationstech vs. Cisco Systems | TELES Informationstech vs. Cisco Systems | TELES Informationstech vs. Motorola Solutions | TELES Informationstech vs. Nokia |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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