Correlation Between Lanka Realty and Nations Trust
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By analyzing existing cross correlation between Lanka Realty Investments and Nations Trust Bank, you can compare the effects of market volatilities on Lanka Realty and Nations Trust 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 Lanka Realty with a short position of Nations Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lanka Realty and Nations Trust.
Diversification Opportunities for Lanka Realty and Nations Trust
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lanka and Nations is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Lanka Realty Investments and Nations Trust Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nations Trust Bank and Lanka Realty 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 Lanka Realty Investments are associated (or correlated) with Nations Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nations Trust Bank has no effect on the direction of Lanka Realty i.e., Lanka Realty and Nations Trust go up and down completely randomly.
Pair Corralation between Lanka Realty and Nations Trust
Assuming the 90 days trading horizon Lanka Realty Investments is expected to under-perform the Nations Trust. In addition to that, Lanka Realty is 1.52 times more volatile than Nations Trust Bank. It trades about 0.0 of its total potential returns per unit of risk. Nations Trust Bank is currently generating about 0.14 per unit of volatility. If you would invest 4,710 in Nations Trust Bank on August 31, 2024 and sell it today you would earn a total of 10,290 from holding Nations Trust Bank or generate 218.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.68% |
| Values | Daily Returns |
Lanka Realty Investments vs. Nations Trust Bank
Performance |
| Timeline |
| Lanka Realty Investments |
| Nations Trust Bank |
Lanka Realty and Nations Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lanka Realty and Nations Trust
The main advantage of trading using opposite Lanka Realty and Nations Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lanka Realty position performs unexpectedly, Nations Trust 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 Nations Trust will offset losses from the drop in Nations Trust's long position.| Lanka Realty vs. HNB Finance | Lanka Realty vs. Prime Lands Residencies | Lanka Realty vs. Jat Holdings PLC | Lanka Realty vs. E M L |
| Nations Trust vs. HNB Finance | Nations Trust vs. Prime Lands Residencies | Nations Trust vs. Jat Holdings PLC | Nations Trust vs. E M L |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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