Correlation Between Seylan Bank and Nations Trust
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By analyzing existing cross correlation between Seylan Bank PLC and Nations Trust Bank, you can compare the effects of market volatilities on Seylan Bank and Nations Trust 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 Seylan Bank with a short position of Nations Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seylan Bank and Nations Trust.
Diversification Opportunities for Seylan Bank and Nations Trust
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Seylan and Nations is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Seylan Bank PLC and Nations Trust Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nations Trust Bank and Seylan 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 Seylan Bank PLC are associated (or correlated) with Nations Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nations Trust Bank has no effect on the direction of Seylan Bank i.e., Seylan Bank and Nations Trust go up and down completely randomly.
Pair Corralation between Seylan Bank and Nations Trust
Assuming the 90 days trading horizon Seylan Bank PLC is expected to generate 1.47 times more return on investment than Nations Trust. However, Seylan Bank is 1.47 times more volatile than Nations Trust Bank. It trades about 0.37 of its potential returns per unit of risk. Nations Trust Bank is currently generating about 0.35 per unit of risk. If you would invest 5,490 in Seylan Bank PLC on September 13, 2024 and sell it today you would earn a total of 980.00 from holding Seylan Bank PLC or generate 17.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seylan Bank PLC vs. Nations Trust Bank
Performance |
| Timeline |
| Seylan Bank PLC |
| Nations Trust Bank |
Seylan Bank and Nations Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seylan Bank and Nations Trust
The main advantage of trading using opposite Seylan Bank and Nations Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seylan Bank position performs unexpectedly, Nations Trust 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 Nations Trust will offset losses from the drop in Nations Trust's long position.| Seylan Bank vs. Jat Holdings PLC | Seylan Bank vs. Lanka Credit and | Seylan Bank vs. VIDULLANKA PLC | Seylan Bank vs. Carson Cumberbatch PLC |
| Nations Trust vs. Tal Lanka Hotels | Nations Trust vs. SERENDIB HOTELS PLC | Nations Trust vs. BROWNS INVESTMENTS PLC | Nations Trust vs. Eden Hotel Lanka |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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