Correlation Between Pan Asia and Nations Trust
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By analyzing existing cross correlation between Pan Asia Banking and Nations Trust Bank, you can compare the effects of market volatilities on Pan Asia and Nations Trust 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 Nations Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pan Asia and Nations Trust.
Diversification Opportunities for Pan Asia and Nations Trust
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pan and Nations is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Pan Asia Banking and Nations Trust Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nations Trust Bank 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 Nations Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nations Trust Bank has no effect on the direction of Pan Asia i.e., Pan Asia and Nations Trust go up and down completely randomly.
Pair Corralation between Pan Asia and Nations Trust
Assuming the 90 days trading horizon Pan Asia Banking is expected to generate 1.24 times more return on investment than Nations Trust. However, Pan Asia is 1.24 times more volatile than Nations Trust Bank. It trades about 0.13 of its potential returns per unit of risk. Nations Trust Bank is currently generating about 0.15 per unit of risk. If you would invest 1,060 in Pan Asia Banking on September 19, 2024 and sell it today you would earn a total of 1,970 from holding Pan Asia Banking or generate 185.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pan Asia Banking vs. Nations Trust Bank
Performance |
| Timeline |
| Pan Asia Banking |
| Nations Trust Bank |
Pan Asia and Nations Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pan Asia and Nations Trust
The main advantage of trading using opposite Pan Asia and Nations Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pan Asia position performs unexpectedly, Nations Trust 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 Nations Trust will offset losses from the drop in Nations Trust's long position.| Pan Asia vs. Hotel Sigiriya PLC | Pan Asia vs. Softlogic Life Insurance | Pan Asia vs. John Keells Hotels | Pan Asia vs. SERENDIB HOTELS PLC |
| Nations Trust vs. Sanasa Development Bank | Nations Trust vs. Pan Asia Banking | Nations Trust vs. Ceylinco Insurance PLC | Nations Trust vs. DFCC 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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