Correlation Between Jat Holdings and Sanasa Development
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By analyzing existing cross correlation between Jat Holdings PLC and Sanasa Development Bank, you can compare the effects of market volatilities on Jat Holdings and Sanasa Development 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 Jat Holdings with a short position of Sanasa Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jat Holdings and Sanasa Development.
Diversification Opportunities for Jat Holdings and Sanasa Development
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jat and Sanasa is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jat Holdings PLC and Sanasa Development Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanasa Development Bank and Jat Holdings 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 Jat Holdings PLC are associated (or correlated) with Sanasa Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanasa Development Bank has no effect on the direction of Jat Holdings i.e., Jat Holdings and Sanasa Development go up and down completely randomly.
Pair Corralation between Jat Holdings and Sanasa Development
Assuming the 90 days trading horizon Jat Holdings PLC is expected to generate 1.16 times more return on investment than Sanasa Development. However, Jat Holdings is 1.16 times more volatile than Sanasa Development Bank. It trades about 0.13 of its potential returns per unit of risk. Sanasa Development Bank is currently generating about 0.12 per unit of risk. If you would invest 1,800 in Jat Holdings PLC on September 3, 2024 and sell it today you would earn a total of 160.00 from holding Jat Holdings PLC or generate 8.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jat Holdings PLC vs. Sanasa Development Bank
Performance |
| Timeline |
| Jat Holdings PLC |
| Sanasa Development Bank |
Jat Holdings and Sanasa Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jat Holdings and Sanasa Development
The main advantage of trading using opposite Jat Holdings and Sanasa Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jat Holdings position performs unexpectedly, Sanasa Development 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 Sanasa Development will offset losses from the drop in Sanasa Development's long position.| Jat Holdings vs. Lanka Credit and | Jat Holdings vs. VIDULLANKA PLC | Jat Holdings vs. Carson Cumberbatch PLC | Jat Holdings vs. Peoples Insurance PLC |
| Sanasa Development vs. Lanka Credit and | Sanasa Development vs. VIDULLANKA PLC | Sanasa Development vs. Carson Cumberbatch PLC | Sanasa Development vs. Peoples Insurance 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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