Correlation Between Nations Trust and SEYLAN BANK
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By analyzing existing cross correlation between Nations Trust Bank and SEYLAN BANK PLC, you can compare the effects of market volatilities on Nations Trust and SEYLAN BANK 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 SEYLAN BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nations Trust and SEYLAN BANK.
Diversification Opportunities for Nations Trust and SEYLAN BANK
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nations and SEYLAN is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Nations Trust Bank and SEYLAN BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEYLAN BANK 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 SEYLAN BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEYLAN BANK PLC has no effect on the direction of Nations Trust i.e., Nations Trust and SEYLAN BANK go up and down completely randomly.
Pair Corralation between Nations Trust and SEYLAN BANK
Assuming the 90 days trading horizon Nations Trust Bank is expected to generate 0.7 times more return on investment than SEYLAN BANK. However, Nations Trust Bank is 1.42 times less risky than SEYLAN BANK. It trades about 0.15 of its potential returns per unit of risk. SEYLAN BANK PLC is currently generating about 0.1 per unit of risk. If you would invest 6,300 in Nations Trust Bank on September 19, 2024 and sell it today you would earn a total of 11,100 from holding Nations Trust Bank or generate 176.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Nations Trust Bank vs. SEYLAN BANK PLC
Performance |
| Timeline |
| Nations Trust Bank |
| SEYLAN BANK PLC |
Nations Trust and SEYLAN BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nations Trust and SEYLAN BANK
The main advantage of trading using opposite Nations Trust and SEYLAN BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nations Trust position performs unexpectedly, SEYLAN BANK 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 SEYLAN BANK will offset losses from the drop in SEYLAN BANK's long position.| Nations Trust vs. Sanasa Development Bank | Nations Trust vs. Pan Asia Banking | Nations Trust vs. Ceylinco Insurance PLC | Nations Trust vs. DFCC Bank PLC |
| SEYLAN BANK vs. Hatton National Bank | SEYLAN BANK vs. Convenience Foods PLC | SEYLAN BANK vs. Amaya Leisure PLC | SEYLAN BANK vs. HATTON NATIONAL BANK |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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