Correlation Between Sampath Bank and ACL Cables
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sampath Bank PLC and ACL Cables PLC, you can compare the effects of market volatilities on Sampath Bank and ACL Cables 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 ACL Cables. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sampath Bank and ACL Cables.
Diversification Opportunities for Sampath Bank and ACL Cables
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sampath and ACL is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sampath Bank PLC and ACL Cables PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACL Cables PLC 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 ACL Cables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACL Cables PLC has no effect on the direction of Sampath Bank i.e., Sampath Bank and ACL Cables go up and down completely randomly.
Pair Corralation between Sampath Bank and ACL Cables
Assuming the 90 days trading horizon Sampath Bank PLC is expected to generate 1.95 times more return on investment than ACL Cables. However, Sampath Bank is 1.95 times more volatile than ACL Cables PLC. It trades about 0.34 of its potential returns per unit of risk. ACL Cables PLC is currently generating about -0.05 per unit of risk. If you would invest 8,790 in Sampath Bank PLC on September 2, 2024 and sell it today you would earn a total of 990.00 from holding Sampath Bank PLC or generate 11.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sampath Bank PLC vs. ACL Cables PLC
Performance |
| Timeline |
| Sampath Bank PLC |
| ACL Cables PLC |
Sampath Bank and ACL Cables Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sampath Bank and ACL Cables
The main advantage of trading using opposite Sampath Bank and ACL Cables positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sampath Bank position performs unexpectedly, ACL Cables 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 ACL Cables will offset losses from the drop in ACL Cables' long position.| Sampath Bank vs. Prime Lands Residencies | Sampath Bank vs. VIDULLANKA PLC | Sampath Bank vs. EX PACK RUGATED CARTONS |
| ACL Cables vs. Commercial Credit and | ACL Cables vs. BROWNS INVESTMENTS PLC | ACL Cables vs. Arpico Insurance | ACL Cables vs. Sampath 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |