Correlation Between HNB Finance and Palm Garden
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By analyzing existing cross correlation between HNB Finance and Palm Garden Hotels, you can compare the effects of market volatilities on HNB Finance and Palm Garden 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 Palm Garden. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNB Finance and Palm Garden.
Diversification Opportunities for HNB Finance and Palm Garden
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HNB and Palm is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding HNB Finance and Palm Garden Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palm Garden Hotels 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 Palm Garden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palm Garden Hotels has no effect on the direction of HNB Finance i.e., HNB Finance and Palm Garden go up and down completely randomly.
Pair Corralation between HNB Finance and Palm Garden
Assuming the 90 days trading horizon HNB Finance is expected to generate 0.9 times more return on investment than Palm Garden. However, HNB Finance is 1.12 times less risky than Palm Garden. It trades about 0.02 of its potential returns per unit of risk. Palm Garden Hotels is currently generating about 0.0 per unit of risk. If you would invest 490.00 in HNB Finance on September 2, 2024 and sell it today you would earn a total of 60.00 from holding HNB Finance or generate 12.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.35% |
| Values | Daily Returns |
HNB Finance vs. Palm Garden Hotels
Performance |
| Timeline |
| HNB Finance |
| Palm Garden Hotels |
HNB Finance and Palm Garden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HNB Finance and Palm Garden
The main advantage of trading using opposite HNB Finance and Palm Garden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNB Finance position performs unexpectedly, Palm Garden 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 Palm Garden will offset losses from the drop in Palm Garden's long position.| HNB Finance vs. Prime Lands Residencies | HNB Finance vs. VIDULLANKA PLC | HNB Finance vs. EX PACK RUGATED CARTONS |
| Palm Garden vs. Prime Lands Residencies | Palm Garden vs. VIDULLANKA PLC | Palm Garden 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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