Correlation Between Twitter and National Bank
Can any of the company-specific risk be diversified away by investing in both Twitter and National 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 Twitter and National Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Twitter and National Bank Holdings, you can compare the effects of market volatilities on Twitter and National 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 Twitter with a short position of National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Twitter and National Bank.
Diversification Opportunities for Twitter and National Bank
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Twitter and National is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Twitter and National Bank Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank Holdings and Twitter 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 Twitter are associated (or correlated) with National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank Holdings has no effect on the direction of Twitter i.e., Twitter and National Bank go up and down completely randomly.
Pair Corralation between Twitter and National Bank
If you would invest 5,370 in Twitter on January 19, 2024 and sell it today you would earn a total of 0.00 from holding Twitter or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Twitter vs. National Bank Holdings
Performance |
| Timeline |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| National Bank Holdings |
Twitter and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Twitter and National Bank
The main advantage of trading using opposite Twitter and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Twitter position performs unexpectedly, National 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 National Bank will offset losses from the drop in National Bank's long position.| Twitter vs. Harmony Gold Mining | Twitter vs. Balchem | Twitter vs. Chester Mining | Twitter vs. Titan Petrochemicals Group |
| National Bank vs. Superior Plus Corp | National Bank vs. Origin Agritech | National Bank vs. SIVERS SEMICONDUCTORS AB | National Bank vs. NorAm Drilling AS |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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