Correlation Between Khiron Life and National Bank

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Can any of the company-specific risk be diversified away by investing in both Khiron Life 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 Khiron Life and National Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Khiron Life Sciences and National Bank Holdings, you can compare the effects of market volatilities on Khiron Life 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 Khiron Life with a short position of National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and National Bank.

Diversification Opportunities for Khiron Life and National Bank

KhironNationalDiversified AwayKhironNationalDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Khiron and National is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences 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 Khiron Life 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 Khiron Life Sciences 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 Khiron Life i.e., Khiron Life and National Bank go up and down completely randomly.

Pair Corralation between Khiron Life and National Bank

If you would invest  3,994  in National Bank Holdings on October 26, 2024 and sell it today you would earn a total of  146.00  from holding National Bank Holdings or generate 3.66% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Khiron Life Sciences  vs.  National Bank Holdings

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 05101520
JavaScript chart by amCharts 3.21.154KH NB9
       Timeline  
Khiron Life Sciences 

Risk-Adjusted Performance

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Over the last 90 days Khiron Life Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Khiron Life is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.0220.0225
National Bank Holdings 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in National Bank Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, National Bank is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan40414243444546

Khiron Life and National Bank Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.010.020.030.040.050.06
JavaScript chart by amCharts 3.21.154KH NB9
       Returns  

Pair Trading with Khiron Life and National Bank

The main advantage of trading using opposite Khiron Life and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life 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.
The idea behind Khiron Life Sciences and National Bank Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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