Correlation Between Sampath Bank and Amana Bank
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By analyzing existing cross correlation between Sampath Bank PLC and Amana Bank, you can compare the effects of market volatilities on Sampath Bank and Amana 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 Sampath Bank with a short position of Amana Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sampath Bank and Amana Bank.
Diversification Opportunities for Sampath Bank and Amana Bank
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sampath and Amana is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Sampath Bank PLC and Amana Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amana Bank and Sampath Bank 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 Sampath Bank PLC are associated (or correlated) with Amana Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amana Bank has no effect on the direction of Sampath Bank i.e., Sampath Bank and Amana Bank go up and down completely randomly.
Pair Corralation between Sampath Bank and Amana Bank
Assuming the 90 days trading horizon Sampath Bank is expected to generate 37.58 times less return on investment than Amana Bank. But when comparing it to its historical volatility, Sampath Bank PLC is 59.42 times less risky than Amana Bank. It trades about 0.15 of its potential returns per unit of risk. Amana Bank is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 230.00 in Amana Bank on August 31, 2024 and sell it today you would earn a total of 2,090 from holding Amana Bank or generate 908.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.87% |
| Values | Daily Returns |
Sampath Bank PLC vs. Amana Bank
Performance |
| Timeline |
| Sampath Bank PLC |
| Amana Bank |
Sampath Bank and Amana Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sampath Bank and Amana Bank
The main advantage of trading using opposite Sampath Bank and Amana Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sampath Bank position performs unexpectedly, Amana 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 Amana Bank will offset losses from the drop in Amana Bank's long position.| Sampath Bank vs. HNB Finance | Sampath Bank vs. Prime Lands Residencies | Sampath Bank vs. Jat Holdings PLC | Sampath Bank vs. E M L |
| Amana Bank vs. Sigiriya Village Hotels | Amana Bank vs. Dolphin Hotels PLC | Amana Bank vs. CEYLINCO INSURANCE PLC | Amana Bank vs. Distilleries Company of |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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