Correlation Between Carson Cumberbatch and DFCC Bank
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By analyzing existing cross correlation between Carson Cumberbatch PLC and DFCC Bank PLC, you can compare the effects of market volatilities on Carson Cumberbatch and DFCC Bank 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 Carson Cumberbatch with a short position of DFCC Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carson Cumberbatch and DFCC Bank.
Diversification Opportunities for Carson Cumberbatch and DFCC Bank
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Carson and DFCC is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Carson Cumberbatch PLC and DFCC Bank PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DFCC Bank PLC and Carson Cumberbatch 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 Carson Cumberbatch PLC are associated (or correlated) with DFCC Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DFCC Bank PLC has no effect on the direction of Carson Cumberbatch i.e., Carson Cumberbatch and DFCC Bank go up and down completely randomly.
Pair Corralation between Carson Cumberbatch and DFCC Bank
Assuming the 90 days trading horizon Carson Cumberbatch PLC is expected to generate 1.5 times more return on investment than DFCC Bank. However, Carson Cumberbatch is 1.5 times more volatile than DFCC Bank PLC. It trades about 0.21 of its potential returns per unit of risk. DFCC Bank PLC is currently generating about 0.2 per unit of risk. If you would invest 32,225 in Carson Cumberbatch PLC on September 13, 2024 and sell it today you would earn a total of 2,800 from holding Carson Cumberbatch PLC or generate 8.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Carson Cumberbatch PLC vs. DFCC Bank PLC
Performance |
| Timeline |
| Carson Cumberbatch PLC |
| DFCC Bank PLC |
Carson Cumberbatch and DFCC Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carson Cumberbatch and DFCC Bank
The main advantage of trading using opposite Carson Cumberbatch and DFCC Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carson Cumberbatch position performs unexpectedly, DFCC Bank 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 DFCC Bank will offset losses from the drop in DFCC Bank's long position.| Carson Cumberbatch vs. Lanka Credit and | Carson Cumberbatch vs. Union Chemicals Lanka | Carson Cumberbatch vs. Arpico Insurance | Carson Cumberbatch vs. HATTON NATIONAL BANK |
| DFCC Bank vs. Janashakthi Insurance | DFCC Bank vs. Distilleries Company of | DFCC Bank vs. Merchant Bank of | DFCC Bank vs. Pan Asia Banking |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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