Correlation Between Attica Publications and National Bank

Can any of the company-specific risk be diversified away by investing in both Attica Publications 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 Attica Publications and National Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Attica Publications SA and National Bank of, you can compare the effects of market volatilities on Attica Publications 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 Attica Publications with a short position of National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Attica Publications and National Bank.

Diversification Opportunities for Attica Publications and National Bank

0.0

Correlation Coefficient

Attica Publications  National Bank

Pay attention - limited upside

The 3 months correlation between Attica and National is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Attica Publications SA and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank and Attica Publications 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 Attica Publications SA 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 has no effect on the direction of Attica Publications i.e., Attica Publications and National Bank go up and down completely randomly.

Pair Corralation between Attica Publications and National Bank

If you would invest  700.00  in National Bank of on March 12, 2024 and sell it today you would earn a total of  126.00  from holding National Bank of or generate 18.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Attica Publications SA  vs.  National Bank of

Attica Publications

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days Attica Publications SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Attica Publications is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

National Bank

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in National Bank of are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, National Bank unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Attica Publications and National Bank

The main advantage of trading using opposite Attica Publications and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Attica Publications 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.

The idea behind Attica Publications SA and National Bank of 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.