Correlation Between Nations Trust and ACL Cables
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By analyzing existing cross correlation between Nations Trust Bank and ACL Cables PLC, you can compare the effects of market volatilities on Nations Trust and ACL Cables 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 Nations Trust with a short position of ACL Cables. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nations Trust and ACL Cables.
Diversification Opportunities for Nations Trust and ACL Cables
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nations and ACL is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Nations Trust Bank and ACL Cables PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACL Cables PLC and Nations Trust 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 Nations Trust Bank are associated (or correlated) with ACL Cables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACL Cables PLC has no effect on the direction of Nations Trust i.e., Nations Trust and ACL Cables go up and down completely randomly.
Pair Corralation between Nations Trust and ACL Cables
Assuming the 90 days trading horizon Nations Trust Bank is expected to generate 1.03 times more return on investment than ACL Cables. However, Nations Trust is 1.03 times more volatile than ACL Cables PLC. It trades about 0.43 of its potential returns per unit of risk. ACL Cables PLC is currently generating about 0.3 per unit of risk. If you would invest 10,600 in Nations Trust Bank on September 12, 2024 and sell it today you would earn a total of 5,125 from holding Nations Trust Bank or generate 48.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Nations Trust Bank vs. ACL Cables PLC
Performance |
| Timeline |
| Nations Trust Bank |
| ACL Cables PLC |
Nations Trust and ACL Cables Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nations Trust and ACL Cables
The main advantage of trading using opposite Nations Trust and ACL Cables positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nations Trust position performs unexpectedly, ACL Cables 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 ACL Cables will offset losses from the drop in ACL Cables' long position.| Nations Trust vs. Lanka Milk Foods | Nations Trust vs. Seylan Bank PLC | Nations Trust vs. Arpico Insurance | Nations Trust vs. Renuka Agri Foods |
| ACL Cables vs. Lanka Credit and | ACL Cables vs. VIDULLANKA PLC | ACL Cables vs. Carson Cumberbatch PLC | ACL Cables 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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