Correlation Between Dundee and National Bank
Can any of the company-specific risk be diversified away by investing in both Dundee 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 Dundee and National Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dundee and National Bank of, you can compare the effects of market volatilities on Dundee 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 Dundee with a short position of National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dundee and National Bank.
Diversification Opportunities for Dundee and National Bank
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dundee and National is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Dundee and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank and Dundee 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 Dundee 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 Dundee i.e., Dundee and National Bank go up and down completely randomly.
Pair Corralation between Dundee and National Bank
Assuming the 90 days trading horizon Dundee is expected to generate 8.67 times more return on investment than National Bank. However, Dundee is 8.67 times more volatile than National Bank of. It trades about 0.03 of its potential returns per unit of risk. National Bank of is currently generating about 0.07 per unit of risk. If you would invest 379.00 in Dundee on September 11, 2025 and sell it today you would earn a total of 10.00 from holding Dundee or generate 2.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dundee vs. National Bank of
Performance |
| Timeline |
| Dundee |
| National Bank |
Dundee and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dundee and National Bank
The main advantage of trading using opposite Dundee and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dundee 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.| Dundee vs. Corby Spirit and | Dundee vs. High Liner Foods | Dundee vs. Andrew Peller Limited | Dundee vs. Andrew Peller Limited |
| National Bank vs. Perseus Mining | National Bank vs. Micron Technology, | National Bank vs. Brookfield Office Properties | National Bank vs. Advent Wireless |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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