Correlation Between Nations Trust and Carson Cumberbatch
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By analyzing existing cross correlation between Nations Trust Bank and Carson Cumberbatch PLC, you can compare the effects of market volatilities on Nations Trust and Carson Cumberbatch 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 Carson Cumberbatch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nations Trust and Carson Cumberbatch.
Diversification Opportunities for Nations Trust and Carson Cumberbatch
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nations and Carson is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Nations Trust Bank and Carson Cumberbatch PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carson Cumberbatch 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 Carson Cumberbatch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carson Cumberbatch PLC has no effect on the direction of Nations Trust i.e., Nations Trust and Carson Cumberbatch go up and down completely randomly.
Pair Corralation between Nations Trust and Carson Cumberbatch
Assuming the 90 days trading horizon Nations Trust is expected to generate 1.54 times less return on investment than Carson Cumberbatch. But when comparing it to its historical volatility, Nations Trust Bank is 1.25 times less risky than Carson Cumberbatch. It trades about 0.09 of its potential returns per unit of risk. Carson Cumberbatch PLC is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 29,050 in Carson Cumberbatch PLC on September 5, 2024 and sell it today you would earn a total of 5,775 from holding Carson Cumberbatch PLC or generate 19.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 82.5% |
| Values | Daily Returns |
Nations Trust Bank vs. Carson Cumberbatch PLC
Performance |
| Timeline |
| Nations Trust Bank |
| Carson Cumberbatch PLC |
Nations Trust and Carson Cumberbatch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nations Trust and Carson Cumberbatch
The main advantage of trading using opposite Nations Trust and Carson Cumberbatch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nations Trust position performs unexpectedly, Carson Cumberbatch 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 Carson Cumberbatch will offset losses from the drop in Carson Cumberbatch's long position.| Nations Trust vs. Ceylon Beverage Holdings | Nations Trust vs. Ceylon Hotels | Nations Trust vs. Palm Garden Hotels | Nations Trust vs. Nuwara Eliya Hotels |
| Carson Cumberbatch vs. SERENDIB HOTELS PLC | Carson Cumberbatch vs. Commercial Credit and | Carson Cumberbatch vs. Eden Hotel Lanka | Carson Cumberbatch vs. Tangerine Beach Hotels |
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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