Correlation Between Sanasa Development and Lanka Realty
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By analyzing existing cross correlation between Sanasa Development Bank and Lanka Realty Investments, you can compare the effects of market volatilities on Sanasa Development and Lanka Realty 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 Sanasa Development with a short position of Lanka Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanasa Development and Lanka Realty.
Diversification Opportunities for Sanasa Development and Lanka Realty
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sanasa and Lanka is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Sanasa Development Bank and Lanka Realty Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lanka Realty Investments and Sanasa Development 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 Sanasa Development Bank are associated (or correlated) with Lanka Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lanka Realty Investments has no effect on the direction of Sanasa Development i.e., Sanasa Development and Lanka Realty go up and down completely randomly.
Pair Corralation between Sanasa Development and Lanka Realty
Assuming the 90 days trading horizon Sanasa Development is expected to generate 3.01 times less return on investment than Lanka Realty. In addition to that, Sanasa Development is 1.23 times more volatile than Lanka Realty Investments. It trades about 0.02 of its total potential returns per unit of risk. Lanka Realty Investments is currently generating about 0.06 per unit of volatility. If you would invest 1,310 in Lanka Realty Investments on November 4, 2024 and sell it today you would earn a total of 30.00 from holding Lanka Realty Investments or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanasa Development Bank vs. Lanka Realty Investments
Performance |
| Timeline |
| Sanasa Development Bank |
| Lanka Realty Investments |
Sanasa Development and Lanka Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanasa Development and Lanka Realty
The main advantage of trading using opposite Sanasa Development and Lanka Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanasa Development position performs unexpectedly, Lanka Realty 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 Lanka Realty will offset losses from the drop in Lanka Realty's long position.| Sanasa Development vs. BROWNS INVESTMENTS PLC | Sanasa Development vs. PEOPLES LEASING FINANCE | Sanasa Development vs. Ceylon Guardian Investment | Sanasa Development vs. Convenience Foods PLC |
| Lanka Realty vs. Peoples Insurance PLC | Lanka Realty vs. COMMERCIAL BANK OF | Lanka Realty vs. National Development Bank | Lanka Realty vs. Softlogic Life Insurance |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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