Correlation Between Quest For and Banque Nationale

Can any of the company-specific risk be diversified away by investing in both Quest For and Banque Nationale 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 Quest For and Banque Nationale into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Quest For Growth and Banque nationale de, you can compare the effects of market volatilities on Quest For and Banque Nationale 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 Quest For with a short position of Banque Nationale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quest For and Banque Nationale.

Diversification Opportunities for Quest For and Banque Nationale

-0.34

Correlation Coefficient

Quest For  Banque Nationale

Very good diversification

The 3 months correlation between Quest and Banque is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Quest For Growth and Banque nationale de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque nationale and Quest For 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 Quest For Growth are associated (or correlated) with Banque Nationale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banque nationale has no effect on the direction of Quest For i.e., Quest For and Banque Nationale go up and down completely randomly.

Pair Corralation between Quest For and Banque Nationale

Assuming the 90 days trading horizon Quest For Growth is expected to generate 0.41 times more return on investment than Banque Nationale. However, Quest For Growth is 2.46 times less risky than Banque Nationale. It trades about 0.12 of its potential returns per unit of risk. Banque nationale de is currently generating about 0.03 per unit of risk. If you would invest  390.00  in Quest For Growth on December 27, 2024 and sell it today you would earn a total of  37.00  from holding Quest For Growth or generate 9.49% return on investment over 90 days.

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

Quest For Growth  vs.  Banque nationale de

Quest For Growth

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Quest For Growth are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak technical and fundamental indicators, Quest For may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Banque nationale

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Banque nationale de are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental drivers, Banque Nationale is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Quest For and Banque Nationale

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

The idea behind Quest For Growth and Banque nationale de 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.