Correlation Between Nations Trust and HVA Foods
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By analyzing existing cross correlation between Nations Trust Bank and HVA Foods PLC, you can compare the effects of market volatilities on Nations Trust and HVA Foods 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 HVA Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nations Trust and HVA Foods.
Diversification Opportunities for Nations Trust and HVA Foods
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nations and HVA is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Nations Trust Bank and HVA Foods PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HVA Foods 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 HVA Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HVA Foods PLC has no effect on the direction of Nations Trust i.e., Nations Trust and HVA Foods go up and down completely randomly.
Pair Corralation between Nations Trust and HVA Foods
Assuming the 90 days trading horizon Nations Trust Bank is expected to generate 0.53 times more return on investment than HVA Foods. However, Nations Trust Bank is 1.9 times less risky than HVA Foods. It trades about 0.31 of its potential returns per unit of risk. HVA Foods PLC is currently generating about 0.01 per unit of risk. If you would invest 12,425 in Nations Trust Bank on August 28, 2024 and sell it today you would earn a total of 2,500 from holding Nations Trust Bank or generate 20.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nations Trust Bank vs. HVA Foods PLC
Performance |
| Timeline |
| Nations Trust Bank |
| HVA Foods PLC |
Nations Trust and HVA Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nations Trust and HVA Foods
The main advantage of trading using opposite Nations Trust and HVA Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nations Trust position performs unexpectedly, HVA Foods 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 HVA Foods will offset losses from the drop in HVA Foods' long position.| Nations Trust vs. Keells Food Products | Nations Trust vs. Ceylon Guardian Investment | Nations Trust vs. BROWNS INVESTMENTS PLC | Nations Trust vs. RENUKA FOODS PLC |
| HVA Foods vs. Merchant Bank of | HVA Foods vs. SEYLAN BANK PLC | HVA Foods vs. COMMERCIAL BANK OF | HVA Foods vs. Sampath Bank 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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