Correlation Between HATTON NATIONAL and Ceylon Guardian
Specify exactly 2 symbols:
By analyzing existing cross correlation between HATTON NATIONAL BANK and Ceylon Guardian Investment, you can compare the effects of market volatilities on HATTON NATIONAL and Ceylon Guardian 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 Ceylon Guardian. Check out your portfolio center. Please also check ongoing floating volatility patterns of HATTON NATIONAL and Ceylon Guardian.
Diversification Opportunities for HATTON NATIONAL and Ceylon Guardian
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HATTON and Ceylon is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding HATTON NATIONAL BANK and Ceylon Guardian Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ceylon Guardian Inve 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 Ceylon Guardian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ceylon Guardian Inve has no effect on the direction of HATTON NATIONAL i.e., HATTON NATIONAL and Ceylon Guardian go up and down completely randomly.
Pair Corralation between HATTON NATIONAL and Ceylon Guardian
Assuming the 90 days trading horizon HATTON NATIONAL BANK is expected to generate 0.73 times more return on investment than Ceylon Guardian. However, HATTON NATIONAL BANK is 1.37 times less risky than Ceylon Guardian. It trades about 0.11 of its potential returns per unit of risk. Ceylon Guardian Investment is currently generating about 0.07 per unit of risk. If you would invest 9,010 in HATTON NATIONAL BANK on August 31, 2024 and sell it today you would earn a total of 9,715 from holding HATTON NATIONAL BANK or generate 107.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 94.66% |
| Values | Daily Returns |
HATTON NATIONAL BANK vs. Ceylon Guardian Investment
Performance |
| Timeline |
| HATTON NATIONAL BANK |
| Ceylon Guardian Inve |
HATTON NATIONAL and Ceylon Guardian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HATTON NATIONAL and Ceylon Guardian
The main advantage of trading using opposite HATTON NATIONAL and Ceylon Guardian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HATTON NATIONAL position performs unexpectedly, Ceylon Guardian 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 Ceylon Guardian will offset losses from the drop in Ceylon Guardian's long position.| HATTON NATIONAL vs. HNB Finance | HATTON NATIONAL vs. Prime Lands Residencies | HATTON NATIONAL vs. Jat Holdings PLC | HATTON NATIONAL vs. E M L |
| Ceylon Guardian vs. HNB Finance | Ceylon Guardian vs. Prime Lands Residencies | Ceylon Guardian vs. Jat Holdings PLC | Ceylon Guardian vs. E M L |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |