Correlation Between DFCC Bank and EB Creasy
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By analyzing existing cross correlation between DFCC Bank PLC and EB Creasy and, you can compare the effects of market volatilities on DFCC Bank and EB Creasy 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 DFCC Bank with a short position of EB Creasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of DFCC Bank and EB Creasy.
Diversification Opportunities for DFCC Bank and EB Creasy
Poor diversification
The 3 months correlation between DFCC and EBCRN0000 is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding DFCC Bank PLC and EB Creasy and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EB Creasy and DFCC 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 DFCC Bank PLC are associated (or correlated) with EB Creasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EB Creasy has no effect on the direction of DFCC Bank i.e., DFCC Bank and EB Creasy go up and down completely randomly.
Pair Corralation between DFCC Bank and EB Creasy
Assuming the 90 days trading horizon DFCC Bank PLC is expected to generate 1.06 times more return on investment than EB Creasy. However, DFCC Bank is 1.06 times more volatile than EB Creasy and. It trades about 0.1 of its potential returns per unit of risk. EB Creasy and is currently generating about 0.03 per unit of risk. If you would invest 3,180 in DFCC Bank PLC on September 14, 2024 and sell it today you would earn a total of 5,610 from holding DFCC Bank PLC or generate 176.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.88% |
| Values | Daily Returns |
DFCC Bank PLC vs. EB Creasy and
Performance |
| Timeline |
| DFCC Bank PLC |
| EB Creasy |
DFCC Bank and EB Creasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DFCC Bank and EB Creasy
The main advantage of trading using opposite DFCC Bank and EB Creasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DFCC Bank position performs unexpectedly, EB Creasy 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 EB Creasy will offset losses from the drop in EB Creasy's long position.| DFCC Bank vs. Janashakthi Insurance | DFCC Bank vs. Distilleries Company of | DFCC Bank vs. Merchant Bank of | DFCC Bank vs. Pan Asia Banking |
| EB Creasy vs. Softlogic Life Insurance | EB Creasy vs. Lanka Milk Foods | EB Creasy vs. DFCC Bank PLC | EB Creasy vs. Merchant Bank 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 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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