Correlation Between National Atomic and GS Chain

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

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

Diversification Opportunities for National Atomic and GS Chain

-0.57

Correlation Coefficient

National Atomic  GS Chain

Excellent diversification

The 3 months correlation between National and GSC is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding National Atomic Co and GS Chain PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GS Chain PLC and National Atomic 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 Atomic Co are associated (or correlated) with GS Chain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GS Chain PLC has no effect on the direction of National Atomic i.e., National Atomic and GS Chain go up and down completely randomly.

Pair Corralation between National Atomic and GS Chain

Assuming the 90 days trading horizon National Atomic is expected to generate 10.72 times less return on investment than GS Chain. But when comparing it to its historical volatility, National Atomic Co is 19.1 times less risky than GS Chain. It trades about 0.06 of its potential returns per unit of risk. GS Chain PLC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  495.00  in GS Chain PLC on April 24, 2025 and sell it today you would lose (455.00) from holding GS Chain PLC or give up 91.92% of portfolio value over 90 days.

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

National Atomic Co  vs.  GS Chain PLC

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.

GS Chain PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GS Chain PLC are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, GS Chain exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with National Atomic and GS Chain

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

The idea behind National Atomic Co and GS Chain PLC 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.