Correlation Between National Bank and Signature Bank
Can any of the company-specific risk be diversified away by investing in both National Bank and Signature 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 National Bank and Signature Bank 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 Signature Bank, you can compare the effects of market volatilities on National Bank and Signature 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 National Bank with a short position of Signature Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Signature Bank.
Diversification Opportunities for National Bank and Signature Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Signature is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and Signature Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signature Bank 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 Signature Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signature Bank has no effect on the direction of National Bank i.e., National Bank and Signature Bank go up and down completely randomly.
Pair Corralation between National Bank and Signature Bank
If you would invest 792.00 in National Bank of on December 30, 2024 and sell it today you would earn a total of 273.00 from holding National Bank of or generate 34.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
National Bank of vs. Signature Bank
Performance |
Timeline |
National Bank |
Signature Bank |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
National Bank and Signature Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with National Bank and Signature Bank
The main advantage of trading using opposite National Bank and Signature Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Signature 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 Signature Bank will offset losses from the drop in Signature Bank's long position.National Bank vs. Alpha Bank SA | National Bank vs. Eurobank Ergasias SA | National Bank vs. Piraeus Bank SA | National Bank vs. PT Bank Central |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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