Correlation Between Pan Asia and HVA Foods
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By analyzing existing cross correlation between Pan Asia Banking and HVA Foods PLC, you can compare the effects of market volatilities on Pan Asia 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 Pan Asia with a short position of HVA Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pan Asia and HVA Foods.
Diversification Opportunities for Pan Asia and HVA Foods
Modest diversification
The 3 months correlation between Pan and HVA is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Pan Asia Banking 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 Pan Asia 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 Pan Asia Banking 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 Pan Asia i.e., Pan Asia and HVA Foods go up and down completely randomly.
Pair Corralation between Pan Asia and HVA Foods
Assuming the 90 days trading horizon Pan Asia Banking is expected to generate 0.54 times more return on investment than HVA Foods. However, Pan Asia Banking is 1.85 times less risky than HVA Foods. It trades about 0.11 of its potential returns per unit of risk. HVA Foods PLC is currently generating about -0.02 per unit of risk. If you would invest 2,170 in Pan Asia Banking on August 31, 2024 and sell it today you would earn a total of 560.00 from holding Pan Asia Banking or generate 25.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.87% |
| Values | Daily Returns |
Pan Asia Banking vs. HVA Foods PLC
Performance |
| Timeline |
| Pan Asia Banking |
| HVA Foods PLC |
Pan Asia and HVA Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pan Asia and HVA Foods
The main advantage of trading using opposite Pan Asia and HVA Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pan Asia 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.| Pan Asia vs. HATTON NATIONAL BANK | Pan Asia vs. CEYLINCO INSURANCE PLC | Pan Asia vs. Seylan Bank PLC | Pan Asia vs. Commercial Credit and |
| HVA Foods vs. Amana Bank | HVA Foods vs. Dolphin Hotels PLC | HVA Foods vs. Mahaweli Reach Hotel | HVA Foods vs. Pan Asia Banking |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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