Correlation Between HATTON NATIONAL and Renuka Agri
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By analyzing existing cross correlation between HATTON NATIONAL BANK and Renuka Agri Foods, you can compare the effects of market volatilities on HATTON NATIONAL and Renuka Agri 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 Renuka Agri. Check out your portfolio center. Please also check ongoing floating volatility patterns of HATTON NATIONAL and Renuka Agri.
Diversification Opportunities for HATTON NATIONAL and Renuka Agri
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HATTON and Renuka is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding HATTON NATIONAL BANK and Renuka Agri Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renuka Agri Foods 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 Renuka Agri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Renuka Agri Foods has no effect on the direction of HATTON NATIONAL i.e., HATTON NATIONAL and Renuka Agri go up and down completely randomly.
Pair Corralation between HATTON NATIONAL and Renuka Agri
Assuming the 90 days trading horizon HATTON NATIONAL BANK is expected to generate 0.69 times more return on investment than Renuka Agri. However, HATTON NATIONAL BANK is 1.45 times less risky than Renuka Agri. It trades about 0.11 of its potential returns per unit of risk. Renuka Agri Foods is currently generating about 0.01 per unit of risk. If you would invest 18,125 in HATTON NATIONAL BANK on August 28, 2024 and sell it today you would earn a total of 600.00 from holding HATTON NATIONAL BANK or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HATTON NATIONAL BANK vs. Renuka Agri Foods
Performance |
| Timeline |
| HATTON NATIONAL BANK |
| Renuka Agri Foods |
HATTON NATIONAL and Renuka Agri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HATTON NATIONAL and Renuka Agri
The main advantage of trading using opposite HATTON NATIONAL and Renuka Agri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HATTON NATIONAL position performs unexpectedly, Renuka Agri 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 Renuka Agri will offset losses from the drop in Renuka Agri's long position.| HATTON NATIONAL vs. Union Chemicals Lanka | HATTON NATIONAL vs. Tal Lanka Hotels | HATTON NATIONAL vs. Ceylinco Insurance PLC | HATTON NATIONAL vs. Peoples Insurance PLC |
| Renuka Agri vs. Keells Food Products | Renuka Agri vs. Peoples Insurance PLC | Renuka Agri vs. Singhe Hospitals | Renuka Agri vs. Asiri Surgical Hospital |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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