Correlation Between National Bank and Iktinos Hellas

Can any of the company-specific risk be diversified away by investing in both National Bank and Iktinos Hellas 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 Iktinos Hellas 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 Iktinos Hellas SA, you can compare the effects of market volatilities on National Bank and Iktinos Hellas 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 Iktinos Hellas. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Iktinos Hellas.

Diversification Opportunities for National Bank and Iktinos Hellas

0.85

Correlation Coefficient

National Bank  Iktinos Hellas

Very poor diversification

The 3 months correlation between National and Iktinos is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and Iktinos Hellas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iktinos Hellas SA 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 Iktinos Hellas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iktinos Hellas SA has no effect on the direction of National Bank i.e., National Bank and Iktinos Hellas go up and down completely randomly.

Pair Corralation between National Bank and Iktinos Hellas

Assuming the 90 days trading horizon National Bank of is expected to generate 0.62 times more return on investment than Iktinos Hellas. However, National Bank of is 1.62 times less risky than Iktinos Hellas. It trades about 0.27 of its potential returns per unit of risk. Iktinos Hellas SA is currently generating about 0.15 per unit of risk. If you would invest  694.00  in National Bank of on December 2, 2024 and sell it today you would earn a total of  198.00  from holding National Bank of or generate 28.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

National Bank of  vs.  Iktinos Hellas SA

National Bank

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in National Bank of are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, National Bank unveiled solid returns over the last few months and may actually be approaching a breakup point.

Iktinos Hellas SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Iktinos Hellas SA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Iktinos Hellas sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with National Bank and Iktinos Hellas

The main advantage of trading using opposite National Bank and Iktinos Hellas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Iktinos Hellas 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 Iktinos Hellas will offset losses from the drop in Iktinos Hellas' long position.

The idea behind National Bank of and Iktinos Hellas SA 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.