Correlation Between EX PACK and COMMERCIAL BANK
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By analyzing existing cross correlation between EX PACK RUGATED CARTONS and COMMERCIAL BANK OF, you can compare the effects of market volatilities on EX PACK and COMMERCIAL 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 EX PACK with a short position of COMMERCIAL BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of EX PACK and COMMERCIAL BANK.
Diversification Opportunities for EX PACK and COMMERCIAL BANK
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PACKN0000 and COMMERCIAL is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding EX PACK RUGATED CARTONS and COMMERCIAL BANK OF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMMERCIAL BANK and EX PACK 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 EX PACK RUGATED CARTONS are associated (or correlated) with COMMERCIAL BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMMERCIAL BANK has no effect on the direction of EX PACK i.e., EX PACK and COMMERCIAL BANK go up and down completely randomly.
Pair Corralation between EX PACK and COMMERCIAL BANK
Assuming the 90 days trading horizon EX PACK is expected to generate 1.41 times less return on investment than COMMERCIAL BANK. In addition to that, EX PACK is 1.1 times more volatile than COMMERCIAL BANK OF. It trades about 0.11 of its total potential returns per unit of risk. COMMERCIAL BANK OF is currently generating about 0.16 per unit of volatility. If you would invest 9,200 in COMMERCIAL BANK OF on September 2, 2024 and sell it today you would earn a total of 290.00 from holding COMMERCIAL BANK OF or generate 3.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EX PACK RUGATED CARTONS vs. COMMERCIAL BANK OF
Performance |
| Timeline |
| EX PACK RUGATED |
| COMMERCIAL BANK |
EX PACK and COMMERCIAL BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EX PACK and COMMERCIAL BANK
The main advantage of trading using opposite EX PACK and COMMERCIAL BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EX PACK position performs unexpectedly, COMMERCIAL 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 COMMERCIAL BANK will offset losses from the drop in COMMERCIAL BANK's long position.| EX PACK vs. COMMERCIAL BANK OF | EX PACK vs. HVA Foods PLC | EX PACK vs. CEYLINCO INSURANCE PLC | EX PACK vs. Lanka Realty Investments |
| COMMERCIAL BANK vs. Convenience Foods PLC | COMMERCIAL BANK vs. Arpico Insurance | COMMERCIAL BANK vs. Lanka Realty Investments | COMMERCIAL BANK vs. Ceylon Hospitals 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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