Correlation Between Sampath Bank and HATTON NATIONAL
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By analyzing existing cross correlation between Sampath Bank PLC and HATTON NATIONAL BANK, you can compare the effects of market volatilities on Sampath Bank and HATTON NATIONAL 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 HATTON NATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sampath Bank and HATTON NATIONAL.
Diversification Opportunities for Sampath Bank and HATTON NATIONAL
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sampath and HATTON is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sampath Bank PLC and HATTON NATIONAL BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HATTON NATIONAL 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 HATTON NATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HATTON NATIONAL BANK has no effect on the direction of Sampath Bank i.e., Sampath Bank and HATTON NATIONAL go up and down completely randomly.
Pair Corralation between Sampath Bank and HATTON NATIONAL
Assuming the 90 days trading horizon Sampath Bank PLC is expected to generate 0.85 times more return on investment than HATTON NATIONAL. However, Sampath Bank PLC is 1.18 times less risky than HATTON NATIONAL. It trades about 0.14 of its potential returns per unit of risk. HATTON NATIONAL BANK is currently generating about 0.11 per unit of risk. If you would invest 7,830 in Sampath Bank PLC on September 3, 2024 and sell it today you would earn a total of 1,950 from holding Sampath Bank PLC or generate 24.9% 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. HATTON NATIONAL BANK
Performance |
| Timeline |
| Sampath Bank PLC |
| HATTON NATIONAL BANK |
Sampath Bank and HATTON NATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sampath Bank and HATTON NATIONAL
The main advantage of trading using opposite Sampath Bank and HATTON NATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sampath Bank position performs unexpectedly, HATTON NATIONAL 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 HATTON NATIONAL will offset losses from the drop in HATTON NATIONAL's long position.| Sampath Bank vs. Lanka Credit and | Sampath Bank vs. VIDULLANKA PLC | Sampath Bank vs. Carson Cumberbatch PLC | Sampath Bank vs. Peoples Insurance PLC |
| HATTON NATIONAL vs. Lanka Credit and | HATTON NATIONAL vs. VIDULLANKA PLC | HATTON NATIONAL vs. Carson Cumberbatch PLC | HATTON NATIONAL vs. Peoples Insurance 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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