Correlation Between Eastern Merchants and Sampath Bank
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By analyzing existing cross correlation between Eastern Merchants PLC and Sampath Bank PLC, you can compare the effects of market volatilities on Eastern Merchants 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 Eastern Merchants with a short position of Sampath Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Merchants and Sampath Bank.
Diversification Opportunities for Eastern Merchants and Sampath Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eastern and Sampath is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Merchants PLC 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 Eastern Merchants 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 Eastern Merchants PLC 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 Eastern Merchants i.e., Eastern Merchants and Sampath Bank go up and down completely randomly.
Pair Corralation between Eastern Merchants and Sampath Bank
If you would invest 8,790 in Sampath Bank PLC on September 2, 2024 and sell it today you would earn a total of 990.00 from holding Sampath Bank PLC or generate 11.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Eastern Merchants PLC vs. Sampath Bank PLC
Performance |
| Timeline |
| Eastern Merchants PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sampath Bank PLC |
Eastern Merchants and Sampath Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Merchants and Sampath Bank
The main advantage of trading using opposite Eastern Merchants and Sampath Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Merchants 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.| Eastern Merchants vs. Convenience Foods PLC | Eastern Merchants vs. Renuka Agri Foods | Eastern Merchants vs. HATTON NATIONAL BANK | Eastern Merchants vs. Lanka Milk Foods |
| Sampath Bank vs. Prime Lands Residencies | Sampath Bank vs. VIDULLANKA PLC | Sampath Bank vs. EX PACK RUGATED CARTONS |
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 Stocks Directory module to find actively traded stocks across global markets.
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