Correlation Between National Bank and WildBrain
Can any of the company-specific risk be diversified away by investing in both National Bank and WildBrain 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 National Bank and WildBrain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Bank of and WildBrain, you can compare the effects of market volatilities on National Bank and WildBrain 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 National Bank with a short position of WildBrain. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and WildBrain.
Diversification Opportunities for National Bank and WildBrain
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and WildBrain is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding National Bank of and WildBrain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WildBrain 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 of are associated (or correlated) with WildBrain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WildBrain has no effect on the direction of National Bank i.e., National Bank and WildBrain go up and down completely randomly.
Pair Corralation between National Bank and WildBrain
Assuming the 90 days horizon National Bank of is expected to generate 0.3 times more return on investment than WildBrain. However, National Bank of is 3.34 times less risky than WildBrain. It trades about 0.15 of its potential returns per unit of risk. WildBrain is currently generating about -0.13 per unit of risk. If you would invest 14,945 in National Bank of on August 17, 2025 and sell it today you would earn a total of 1,235 from holding National Bank of or generate 8.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Bank of vs. WildBrain
Performance |
| Timeline |
| National Bank |
| WildBrain |
National Bank and WildBrain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Bank and WildBrain
The main advantage of trading using opposite National Bank and WildBrain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, WildBrain 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 WildBrain will offset losses from the drop in WildBrain's long position.| National Bank vs. Toronto Dominion Bank Pref | National Bank vs. Great West Lifeco | National Bank vs. Sun Life Financial | National Bank vs. Manulife Financial Corp |
| WildBrain vs. Qyou Media | WildBrain vs. Overactive Media Corp | WildBrain vs. Zoomd Technologies | WildBrain vs. Corus Entertainment |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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