Two Equities Correlation Analysis
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NB9.F
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for National Bank and NYSE Composite
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and NYSE is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding National Bank Holdings and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite 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 Holdings are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of National Bank i.e., National Bank and NYSE Composite go up and down completely randomly.
Pair Corralation between National Bank and NYSE Composite
Assuming the 90 days horizon National Bank Holdings is expected to generate 3.19 times more return on investment than NYSE Composite. However, National Bank is 3.19 times more volatile than NYSE Composite. It trades about -0.04 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.23 per unit of risk. If you would invest 3,040 in National Bank Holdings on January 19, 2024 and sell it today you would lose (60.00) from holding National Bank Holdings or give up 1.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
National Bank Holdings vs. NYSE Composite
Performance |
| Timeline |
National Bank and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
National Bank Holdings
Pair trading matchups for National Bank
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with National Bank and NYSE Composite
The main advantage of trading using opposite National Bank and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.| National Bank vs. Superior Plus Corp | National Bank vs. Origin Agritech | National Bank vs. SIVERS SEMICONDUCTORS AB | National Bank vs. NorAm Drilling AS |
| NYSE Composite vs. Western Digital | NYSE Composite vs. Meta Data | NYSE Composite vs. Transphorm Technology | NYSE Composite vs. Playtika Holding Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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