Correlation Between National Bank and Atlas For
Can any of the company-specific risk be diversified away by investing in both National Bank and Atlas For 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 Atlas For into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Bank and Atlas For Investment, you can compare the effects of market volatilities on National Bank and Atlas For 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 Atlas For. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and Atlas For.
Diversification Opportunities for National Bank and Atlas For
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Atlas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Bank and Atlas For Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas For Investment 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 are associated (or correlated) with Atlas For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas For Investment has no effect on the direction of National Bank i.e., National Bank and Atlas For go up and down completely randomly.
Pair Corralation between National Bank and Atlas For
If you would invest 70.00 in Atlas For Investment on September 16, 2024 and sell it today you would earn a total of 40.00 from holding Atlas For Investment or generate 57.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
National Bank vs. Atlas For Investment
Performance |
Timeline |
National Bank |
Atlas For Investment |
National Bank and Atlas For Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with National Bank and Atlas For
The main advantage of trading using opposite National Bank and Atlas For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, Atlas For 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 Atlas For will offset losses from the drop in Atlas For's long position.National Bank vs. Paint Chemicals Industries | National Bank vs. Reacap Financial Investments | National Bank vs. Egyptians For Investment | National Bank vs. Misr Oils Soap |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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