Correlation Between HATTON NATIONAL and Union Bank
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By analyzing existing cross correlation between HATTON NATIONAL BANK and Union Bank, you can compare the effects of market volatilities on HATTON NATIONAL and Union Bank 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 Union Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of HATTON NATIONAL and Union Bank.
Diversification Opportunities for HATTON NATIONAL and Union Bank
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HATTON and Union is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding HATTON NATIONAL BANK and Union Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Bank 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 Union Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Bank has no effect on the direction of HATTON NATIONAL i.e., HATTON NATIONAL and Union Bank go up and down completely randomly.
Pair Corralation between HATTON NATIONAL and Union Bank
Assuming the 90 days trading horizon HATTON NATIONAL BANK is expected to generate 1.0 times more return on investment than Union Bank. However, HATTON NATIONAL BANK is as risky as Union Bank. It trades about -0.07 of its potential returns per unit of risk. Union Bank is currently generating about -0.14 per unit of risk. If you would invest 19,250 in HATTON NATIONAL BANK on September 2, 2024 and sell it today you would lose (300.00) from holding HATTON NATIONAL BANK or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HATTON NATIONAL BANK vs. Union Bank
Performance |
| Timeline |
| HATTON NATIONAL BANK |
| Union Bank |
HATTON NATIONAL and Union Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HATTON NATIONAL and Union Bank
The main advantage of trading using opposite HATTON NATIONAL and Union Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HATTON NATIONAL position performs unexpectedly, Union Bank 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 Union Bank will offset losses from the drop in Union Bank's long position.| HATTON NATIONAL vs. Prime Lands Residencies | HATTON NATIONAL vs. VIDULLANKA PLC | HATTON NATIONAL vs. EX PACK RUGATED CARTONS |
| Union Bank vs. Ceylon Guardian Investment | Union Bank vs. HATTON NATIONAL BANK | Union Bank vs. Convenience Foods PLC | Union Bank vs. National Development Bank |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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