Correlation Between HNB Finance and Singhe Hospitals
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By analyzing existing cross correlation between HNB Finance and Singhe Hospitals, you can compare the effects of market volatilities on HNB Finance and Singhe Hospitals 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 Singhe Hospitals. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNB Finance and Singhe Hospitals.
Diversification Opportunities for HNB Finance and Singhe Hospitals
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HNB and Singhe is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding HNB Finance and Singhe Hospitals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singhe Hospitals 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 Singhe Hospitals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singhe Hospitals has no effect on the direction of HNB Finance i.e., HNB Finance and Singhe Hospitals go up and down completely randomly.
Pair Corralation between HNB Finance and Singhe Hospitals
Assuming the 90 days trading horizon HNB Finance is expected to under-perform the Singhe Hospitals. But the stock apears to be less risky and, when comparing its historical volatility, HNB Finance is 2.66 times less risky than Singhe Hospitals. The stock trades about -0.19 of its potential returns per unit of risk. The Singhe Hospitals is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 260.00 in Singhe Hospitals on November 3, 2024 and sell it today you would earn a total of 30.00 from holding Singhe Hospitals or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HNB Finance vs. Singhe Hospitals
Performance |
| Timeline |
| HNB Finance |
| Singhe Hospitals |
HNB Finance and Singhe Hospitals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HNB Finance and Singhe Hospitals
The main advantage of trading using opposite HNB Finance and Singhe Hospitals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNB Finance position performs unexpectedly, Singhe Hospitals 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 Singhe Hospitals will offset losses from the drop in Singhe Hospitals' long position.| HNB Finance vs. Prime Lands Residencies | HNB Finance vs. Jat Holdings PLC | HNB Finance vs. E M L | HNB Finance vs. Lanka Credit and |
| Singhe Hospitals vs. HATTON NATIONAL BANK | Singhe Hospitals vs. Keells Food Products | Singhe Hospitals vs. Carson Cumberbatch PLC | Singhe Hospitals vs. Seylan Bank PLC |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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