Correlation Between 4Imprint Group and National Atomic

Can any of the company-specific risk be diversified away by investing in both 4Imprint Group and National Atomic 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 4Imprint Group and National Atomic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 4Imprint Group Plc and National Atomic Co, you can compare the effects of market volatilities on 4Imprint Group and National Atomic 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 4Imprint Group with a short position of National Atomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of 4Imprint Group and National Atomic.

Diversification Opportunities for 4Imprint Group and National Atomic

0.84

Correlation Coefficient

4Imprint Group  National Atomic

Very poor diversification

The 3 months correlation between 4Imprint and National is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding 4Imprint Group Plc and National Atomic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Atomic and 4Imprint 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 4Imprint Group Plc are associated (or correlated) with National Atomic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Atomic has no effect on the direction of 4Imprint Group i.e., 4Imprint Group and National Atomic go up and down completely randomly.

Pair Corralation between 4Imprint Group and National Atomic

Assuming the 90 days trading horizon 4Imprint Group is expected to generate 1.62 times less return on investment than National Atomic. In addition to that, 4Imprint Group is 1.23 times more volatile than National Atomic Co. It trades about 0.13 of its total potential returns per unit of risk. National Atomic Co is currently generating about 0.26 per unit of volatility. If you would invest  3,163  in National Atomic Co on April 24, 2025 and sell it today you would earn a total of  1,177  from holding National Atomic Co or generate 37.21% return on investment over 90 days.

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

4Imprint Group Plc  vs.  National Atomic Co

4Imprint Group Plc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in 4Imprint Group Plc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, 4Imprint Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

National Atomic

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in National Atomic Co are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, National Atomic exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 4Imprint Group and National Atomic

The main advantage of trading using opposite 4Imprint Group and National Atomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 4Imprint Group position performs unexpectedly, National Atomic 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 Atomic will offset losses from the drop in National Atomic's long position.

The idea behind 4Imprint Group Plc and National Atomic Co 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.