Correlation Between Commercial Credit and Lanka Credit
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By analyzing existing cross correlation between Commercial Credit and and Lanka Credit and, you can compare the effects of market volatilities on Commercial Credit and Lanka Credit 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 Commercial Credit with a short position of Lanka Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commercial Credit and Lanka Credit.
Diversification Opportunities for Commercial Credit and Lanka Credit
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Commercial and Lanka is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Commercial Credit and and Lanka Credit and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lanka Credit and Commercial Credit 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 Commercial Credit and are associated (or correlated) with Lanka Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lanka Credit has no effect on the direction of Commercial Credit i.e., Commercial Credit and Lanka Credit go up and down completely randomly.
Pair Corralation between Commercial Credit and Lanka Credit
Assuming the 90 days trading horizon Commercial Credit and is expected to generate 0.69 times more return on investment than Lanka Credit. However, Commercial Credit and is 1.46 times less risky than Lanka Credit. It trades about 0.06 of its potential returns per unit of risk. Lanka Credit and is currently generating about 0.01 per unit of risk. If you would invest 2,400 in Commercial Credit and on August 28, 2024 and sell it today you would earn a total of 2,030 from holding Commercial Credit and or generate 84.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.15% |
| Values | Daily Returns |
Commercial Credit and vs. Lanka Credit and
Performance |
| Timeline |
| Commercial Credit |
| Lanka Credit |
Commercial Credit and Lanka Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commercial Credit and Lanka Credit
The main advantage of trading using opposite Commercial Credit and Lanka Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commercial Credit position performs unexpectedly, Lanka Credit 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 Lanka Credit will offset losses from the drop in Lanka Credit's long position.| Commercial Credit vs. John Keells Hotels | Commercial Credit vs. Hotel Sigiriya PLC | Commercial Credit vs. Tal Lanka Hotels | Commercial Credit vs. Lighthouse Hotel PLC |
| Lanka Credit vs. Sigiriya Village Hotels | Lanka Credit vs. Union Chemicals Lanka | Lanka Credit vs. Sri Lanka Telecom | Lanka Credit vs. Distilleries Company of |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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