Correlation Between Hatton National and Tal Lanka
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hatton National Bank and Tal Lanka Hotels, you can compare the effects of market volatilities on Hatton National and Tal Lanka 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 Hatton National with a short position of Tal Lanka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hatton National and Tal Lanka.
Diversification Opportunities for Hatton National and Tal Lanka
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hatton and Tal is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Hatton National Bank and Tal Lanka Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tal Lanka Hotels and Hatton National 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 Hatton National Bank are associated (or correlated) with Tal Lanka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tal Lanka Hotels has no effect on the direction of Hatton National i.e., Hatton National and Tal Lanka go up and down completely randomly.
Pair Corralation between Hatton National and Tal Lanka
Assuming the 90 days trading horizon Hatton National Bank is expected to generate 0.5 times more return on investment than Tal Lanka. However, Hatton National Bank is 2.0 times less risky than Tal Lanka. It trades about 0.09 of its potential returns per unit of risk. Tal Lanka Hotels is currently generating about 0.01 per unit of risk. If you would invest 16,375 in Hatton National Bank on September 4, 2024 and sell it today you would earn a total of 6,875 from holding Hatton National Bank or generate 41.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.25% |
| Values | Daily Returns |
Hatton National Bank vs. Tal Lanka Hotels
Performance |
| Timeline |
| Hatton National Bank |
| Tal Lanka Hotels |
Hatton National and Tal Lanka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hatton National and Tal Lanka
The main advantage of trading using opposite Hatton National and Tal Lanka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hatton National position performs unexpectedly, Tal Lanka 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 Tal Lanka will offset losses from the drop in Tal Lanka's long position.| Hatton National vs. Lanka Credit and | Hatton National vs. VIDULLANKA PLC | Hatton National vs. Carson Cumberbatch PLC | Hatton National vs. Nations Trust Bank |
| Tal Lanka vs. Amaya Leisure PLC | Tal Lanka vs. SERENDIB HOTELS PLC | Tal Lanka vs. Lion Brewery Ceylon | Tal Lanka vs. Galadari Hotels Lanka |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |