Correlation Between COMMERCIAL BANK and Merchant Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between COMMERCIAL BANK OF and Merchant Bank of, you can compare the effects of market volatilities on COMMERCIAL BANK and Merchant 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 COMMERCIAL BANK with a short position of Merchant Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMMERCIAL BANK and Merchant Bank.
Diversification Opportunities for COMMERCIAL BANK and Merchant Bank
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between COMMERCIAL and Merchant is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding COMMERCIAL BANK OF and Merchant Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merchant Bank and COMMERCIAL 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 COMMERCIAL BANK OF are associated (or correlated) with Merchant Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merchant Bank has no effect on the direction of COMMERCIAL BANK i.e., COMMERCIAL BANK and Merchant Bank go up and down completely randomly.
Pair Corralation between COMMERCIAL BANK and Merchant Bank
Assuming the 90 days trading horizon COMMERCIAL BANK OF is expected to generate 0.45 times more return on investment than Merchant Bank. However, COMMERCIAL BANK OF is 2.21 times less risky than Merchant Bank. It trades about 0.24 of its potential returns per unit of risk. Merchant Bank of is currently generating about -0.18 per unit of risk. If you would invest 8,880 in COMMERCIAL BANK OF on August 27, 2024 and sell it today you would earn a total of 450.00 from holding COMMERCIAL BANK OF or generate 5.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COMMERCIAL BANK OF vs. Merchant Bank of
Performance |
| Timeline |
| COMMERCIAL BANK |
| Merchant Bank |
COMMERCIAL BANK and Merchant Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMMERCIAL BANK and Merchant Bank
The main advantage of trading using opposite COMMERCIAL BANK and Merchant Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMMERCIAL BANK position performs unexpectedly, Merchant 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 Merchant Bank will offset losses from the drop in Merchant Bank's long position.| COMMERCIAL BANK vs. ACL Plastics PLC | COMMERCIAL BANK vs. Ceylon Hospitals PLC | COMMERCIAL BANK vs. Browns Beach Hotels | COMMERCIAL BANK vs. SERENDIB HOTELS PLC |
| Merchant Bank vs. Hotel Sigiriya PLC | Merchant Bank vs. SERENDIB HOTELS PLC | Merchant Bank vs. Singhe Hospitals | Merchant Bank vs. Pegasus Hotels 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |