Correlation Between SERENDIB HOTELS and Sampath Bank
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By analyzing existing cross correlation between SERENDIB HOTELS PLC and Sampath Bank PLC, you can compare the effects of market volatilities on SERENDIB HOTELS and Sampath 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 SERENDIB HOTELS with a short position of Sampath Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of SERENDIB HOTELS and Sampath Bank.
Diversification Opportunities for SERENDIB HOTELS and Sampath Bank
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SERENDIB and Sampath is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding SERENDIB HOTELS PLC and Sampath Bank PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sampath Bank PLC and SERENDIB HOTELS 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 SERENDIB HOTELS PLC are associated (or correlated) with Sampath Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sampath Bank PLC has no effect on the direction of SERENDIB HOTELS i.e., SERENDIB HOTELS and Sampath Bank go up and down completely randomly.
Pair Corralation between SERENDIB HOTELS and Sampath Bank
Assuming the 90 days trading horizon SERENDIB HOTELS PLC is expected to under-perform the Sampath Bank. In addition to that, SERENDIB HOTELS is 1.74 times more volatile than Sampath Bank PLC. It trades about -0.4 of its total potential returns per unit of risk. Sampath Bank PLC is currently generating about -0.02 per unit of volatility. If you would invest 12,125 in Sampath Bank PLC on November 29, 2024 and sell it today you would lose (75.00) from holding Sampath Bank PLC or give up 0.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SERENDIB HOTELS PLC vs. Sampath Bank PLC
Performance |
| Timeline |
| SERENDIB HOTELS PLC |
| Sampath Bank PLC |
SERENDIB HOTELS and Sampath Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SERENDIB HOTELS and Sampath Bank
The main advantage of trading using opposite SERENDIB HOTELS and Sampath Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SERENDIB HOTELS position performs unexpectedly, Sampath 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 Sampath Bank will offset losses from the drop in Sampath Bank's long position.| SERENDIB HOTELS vs. Union Chemicals Lanka | SERENDIB HOTELS vs. Commercial Credit and | SERENDIB HOTELS vs. Palm Garden Hotels | SERENDIB HOTELS vs. Tal Lanka Hotels |
| Sampath Bank vs. John Keells Hotels | Sampath Bank vs. Hotel Sigiriya PLC | Sampath Bank vs. Palm Garden Hotels | Sampath Bank vs. Renuka City Hotel |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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