Correlation Between Asiri Surgical and Union Chemicals
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By analyzing existing cross correlation between Asiri Surgical Hospital and Union Chemicals Lanka, you can compare the effects of market volatilities on Asiri Surgical and Union Chemicals 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 Asiri Surgical with a short position of Union Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asiri Surgical and Union Chemicals.
Diversification Opportunities for Asiri Surgical and Union Chemicals
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asiri and Union is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Asiri Surgical Hospital and Union Chemicals Lanka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Chemicals Lanka and Asiri Surgical 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 Asiri Surgical Hospital are associated (or correlated) with Union Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Chemicals Lanka has no effect on the direction of Asiri Surgical i.e., Asiri Surgical and Union Chemicals go up and down completely randomly.
Pair Corralation between Asiri Surgical and Union Chemicals
Assuming the 90 days trading horizon Asiri Surgical Hospital is expected to under-perform the Union Chemicals. In addition to that, Asiri Surgical is 1.15 times more volatile than Union Chemicals Lanka. It trades about -0.02 of its total potential returns per unit of risk. Union Chemicals Lanka is currently generating about 0.03 per unit of volatility. If you would invest 65,050 in Union Chemicals Lanka on September 2, 2024 and sell it today you would earn a total of 3,950 from holding Union Chemicals Lanka or generate 6.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.09% |
| Values | Daily Returns |
Asiri Surgical Hospital vs. Union Chemicals Lanka
Performance |
| Timeline |
| Asiri Surgical Hospital |
| Union Chemicals Lanka |
Asiri Surgical and Union Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asiri Surgical and Union Chemicals
The main advantage of trading using opposite Asiri Surgical and Union Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asiri Surgical position performs unexpectedly, Union Chemicals 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 Union Chemicals will offset losses from the drop in Union Chemicals' long position.| Asiri Surgical vs. Prime Lands Residencies | Asiri Surgical vs. VIDULLANKA PLC | Asiri Surgical vs. EX PACK RUGATED CARTONS |
| Union Chemicals vs. Prime Lands Residencies | Union Chemicals vs. VIDULLANKA PLC | Union Chemicals vs. EX PACK RUGATED CARTONS |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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