Correlation Between EB Creasy and Sampath Bank
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By analyzing existing cross correlation between EB Creasy and and Sampath Bank PLC, you can compare the effects of market volatilities on EB Creasy and Sampath 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 EB Creasy with a short position of Sampath Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of EB Creasy and Sampath Bank.
Diversification Opportunities for EB Creasy and Sampath Bank
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EBCRN0000 and Sampath is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding EB Creasy and and Sampath Bank PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sampath Bank PLC and EB Creasy 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 EB Creasy and are associated (or correlated) with Sampath Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sampath Bank PLC has no effect on the direction of EB Creasy i.e., EB Creasy and Sampath Bank go up and down completely randomly.
Pair Corralation between EB Creasy and Sampath Bank
Assuming the 90 days trading horizon EB Creasy is expected to generate 4.15 times less return on investment than Sampath Bank. In addition to that, EB Creasy is 1.3 times more volatile than Sampath Bank PLC. It trades about 0.02 of its total potential returns per unit of risk. Sampath Bank PLC is currently generating about 0.13 per unit of volatility. If you would invest 8,010 in Sampath Bank PLC on September 5, 2024 and sell it today you would earn a total of 1,740 from holding Sampath Bank PLC or generate 21.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.0% |
| Values | Daily Returns |
EB Creasy and vs. Sampath Bank PLC
Performance |
| Timeline |
| EB Creasy |
| Sampath Bank PLC |
EB Creasy and Sampath Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EB Creasy and Sampath Bank
The main advantage of trading using opposite EB Creasy and Sampath Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EB Creasy position performs unexpectedly, Sampath 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 Sampath Bank will offset losses from the drop in Sampath Bank's long position.| EB Creasy vs. Sampath Bank PLC | EB Creasy vs. Citrus Leisure PLC | EB Creasy vs. Sanasa Development Bank | EB Creasy vs. Commercial Credit and |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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