Correlation Between HNB Finance and EX PACK
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By analyzing existing cross correlation between HNB Finance and EX PACK RUGATED CARTONS, you can compare the effects of market volatilities on HNB Finance and EX PACK 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 HNB Finance with a short position of EX PACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNB Finance and EX PACK.
Diversification Opportunities for HNB Finance and EX PACK
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HNB and PACKN0000 is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding HNB Finance and EX PACK RUGATED CARTONS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EX PACK RUGATED and HNB Finance 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 HNB Finance are associated (or correlated) with EX PACK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EX PACK RUGATED has no effect on the direction of HNB Finance i.e., HNB Finance and EX PACK go up and down completely randomly.
Pair Corralation between HNB Finance and EX PACK
Assuming the 90 days trading horizon HNB Finance is expected to under-perform the EX PACK. In addition to that, HNB Finance is 2.12 times more volatile than EX PACK RUGATED CARTONS. It trades about -0.16 of its total potential returns per unit of risk. EX PACK RUGATED CARTONS is currently generating about 0.0 per unit of volatility. If you would invest 1,390 in EX PACK RUGATED CARTONS on August 27, 2024 and sell it today you would earn a total of 0.00 from holding EX PACK RUGATED CARTONS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HNB Finance vs. EX PACK RUGATED CARTONS
Performance |
| Timeline |
| HNB Finance |
| EX PACK RUGATED |
HNB Finance and EX PACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HNB Finance and EX PACK
The main advantage of trading using opposite HNB Finance and EX PACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNB Finance position performs unexpectedly, EX PACK 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 EX PACK will offset losses from the drop in EX PACK's long position.| HNB Finance vs. Lanka Realty Investments | HNB Finance vs. Aitken Spence Hotel | HNB Finance vs. Serendib Hotels PLC | HNB Finance vs. Convenience Foods PLC |
| EX PACK vs. Commercial Credit and | EX PACK vs. BROWNS INVESTMENTS PLC | EX PACK vs. Softlogic Life Insurance | EX PACK vs. Janashakthi Insurance |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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