Correlation Between Lanka Credit and Hatton National
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By analyzing existing cross correlation between Lanka Credit and and Hatton National Bank, you can compare the effects of market volatilities on Lanka Credit and Hatton National 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 Lanka Credit with a short position of Hatton National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lanka Credit and Hatton National.
Diversification Opportunities for Lanka Credit and Hatton National
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Lanka and Hatton is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Lanka Credit and and Hatton National Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hatton National Bank and Lanka Credit 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 Lanka Credit and are associated (or correlated) with Hatton National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hatton National Bank has no effect on the direction of Lanka Credit i.e., Lanka Credit and Hatton National go up and down completely randomly.
Pair Corralation between Lanka Credit and Hatton National
Assuming the 90 days trading horizon Lanka Credit and is expected to generate 1.82 times more return on investment than Hatton National. However, Lanka Credit is 1.82 times more volatile than Hatton National Bank. It trades about 0.32 of its potential returns per unit of risk. Hatton National Bank is currently generating about 0.26 per unit of risk. If you would invest 260.00 in Lanka Credit and on November 4, 2024 and sell it today you would earn a total of 60.00 from holding Lanka Credit and or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lanka Credit and vs. Hatton National Bank
Performance |
| Timeline |
| Lanka Credit |
| Hatton National Bank |
Lanka Credit and Hatton National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lanka Credit and Hatton National
The main advantage of trading using opposite Lanka Credit and Hatton National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lanka Credit position performs unexpectedly, Hatton National 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 Hatton National will offset losses from the drop in Hatton National's long position.| Lanka Credit vs. Keells Food Products | Lanka Credit vs. Commercial Credit and | Lanka Credit vs. Convenience Foods PLC | Lanka Credit vs. Peoples Insurance PLC |
| Hatton National vs. Renuka Agri Foods | Hatton National vs. Asiri Surgical Hospital | Hatton National vs. RENUKA FOODS PLC | Hatton National vs. Convenience Foods 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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