Correlation Between National Bank and DelphX Capital

Can any of the company-specific risk be diversified away by investing in both National Bank and DelphX Capital 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 DelphX Capital 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 DelphX Capital Markets, you can compare the effects of market volatilities on National Bank and DelphX Capital 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 DelphX Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Bank and DelphX Capital.

Diversification Opportunities for National Bank and DelphX Capital

-0.57

Correlation Coefficient

National Bank  DelphX Capital

Excellent diversification

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

Pair Corralation between National Bank and DelphX Capital

Assuming the 90 days trading horizon National Bank is expected to generate 1.57 times less return on investment than DelphX Capital. But when comparing it to its historical volatility, National Bank of is 17.1 times less risky than DelphX Capital. It trades about 0.14 of its potential returns per unit of risk. DelphX Capital Markets is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  14.00  in DelphX Capital Markets on April 25, 2025 and sell it today you would lose (9.00) from holding DelphX Capital Markets or give up 64.29% of portfolio value over 90 days.

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

National Bank of  vs.  DelphX Capital Markets

National Bank

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in National Bank of are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, National Bank is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

DelphX Capital Markets

Risk-Adjusted Performance

Very Weak

Over the last 90 days DelphX Capital Markets has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's essential indicators remain fairly stable which may send shares a bit higher in August 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with National Bank and DelphX Capital

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

The idea behind National Bank of and DelphX Capital Markets 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.