Correlation Between National Bank and WANDA HOTEL

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

By analyzing existing cross correlation between National Bank Holdings and WANDA HOTEL DEVEL, you can compare the effects of market volatilities on National Bank and WANDA HOTEL 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 WANDA HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and WANDA HOTEL.

Diversification Opportunities for National Bank and WANDA HOTEL

0.34

Correlation Coefficient

National Bank  WANDA HOTEL

Weak diversification

The 3 months correlation between National and WANDA is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding National Bank Holdings and WANDA HOTEL DEVEL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WANDA HOTEL DEVEL 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 Holdings are associated (or correlated) with WANDA HOTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WANDA HOTEL DEVEL has no effect on the direction of National Bank i.e., National Bank and WANDA HOTEL go up and down completely randomly.

Pair Corralation between National Bank and WANDA HOTEL

Assuming the 90 days horizon National Bank is expected to generate 13.76 times less return on investment than WANDA HOTEL. But when comparing it to its historical volatility, National Bank Holdings is 3.02 times less risky than WANDA HOTEL. It trades about 0.02 of its potential returns per unit of risk. WANDA HOTEL DEVEL is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  5.10  in WANDA HOTEL DEVEL on May 6, 2025 and sell it today you would earn a total of  1.35  from holding WANDA HOTEL DEVEL or generate 26.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

National Bank Holdings  vs.  WANDA HOTEL DEVEL

National Bank Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in National Bank Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, National Bank is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

WANDA HOTEL DEVEL

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in WANDA HOTEL DEVEL are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, WANDA HOTEL reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with National Bank and WANDA HOTEL

The main advantage of trading using opposite National Bank and WANDA HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Bank position performs unexpectedly, WANDA HOTEL 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 WANDA HOTEL will offset losses from the drop in WANDA HOTEL's long position.

The idea behind National Bank Holdings and WANDA HOTEL DEVEL 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..