Correlation Between Currenc Group and National Bankshares

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Can any of the company-specific risk be diversified away by investing in both Currenc Group and National Bankshares 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 Currenc Group and National Bankshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Currenc Group Ordinary and National Bankshares, you can compare the effects of market volatilities on Currenc Group and National Bankshares 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 Currenc Group with a short position of National Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Currenc Group and National Bankshares.

Diversification Opportunities for Currenc Group and National Bankshares

-0.16
  Correlation Coefficient

Good diversification

The 3 months correlation between Currenc and National is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Currenc Group Ordinary and National Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bankshares and Currenc Group 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 Currenc Group Ordinary are associated (or correlated) with National Bankshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bankshares has no effect on the direction of Currenc Group i.e., Currenc Group and National Bankshares go up and down completely randomly.

Pair Corralation between Currenc Group and National Bankshares

Given the investment horizon of 90 days Currenc Group Ordinary is expected to generate 4.78 times more return on investment than National Bankshares. However, Currenc Group is 4.78 times more volatile than National Bankshares. It trades about 0.12 of its potential returns per unit of risk. National Bankshares is currently generating about 0.0 per unit of risk. If you would invest  170.00  in Currenc Group Ordinary on August 30, 2025 and sell it today you would earn a total of  95.00  from holding Currenc Group Ordinary or generate 55.88% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Currenc Group Ordinary  vs.  National Bankshares

 Performance 
       Timeline  
Currenc Group Ordinary 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Currenc Group Ordinary are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Currenc Group reported solid returns over the last few months and may actually be approaching a breakup point.
National Bankshares 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days National Bankshares has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, National Bankshares is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Currenc Group and National Bankshares Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Currenc Group and National Bankshares

The main advantage of trading using opposite Currenc Group and National Bankshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Currenc Group position performs unexpectedly, National Bankshares 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 Bankshares will offset losses from the drop in National Bankshares' long position.
The idea behind Currenc Group Ordinary and National Bankshares 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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