Correlation Between Sigiriya Village and HNB Finance
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By analyzing existing cross correlation between Sigiriya Village Hotels and HNB Finance, you can compare the effects of market volatilities on Sigiriya Village and HNB Finance 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 Sigiriya Village with a short position of HNB Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sigiriya Village and HNB Finance.
Diversification Opportunities for Sigiriya Village and HNB Finance
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sigiriya and HNB is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sigiriya Village Hotels and HNB Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNB Finance and Sigiriya Village 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 Sigiriya Village Hotels are associated (or correlated) with HNB Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNB Finance has no effect on the direction of Sigiriya Village i.e., Sigiriya Village and HNB Finance go up and down completely randomly.
Pair Corralation between Sigiriya Village and HNB Finance
Assuming the 90 days trading horizon Sigiriya Village Hotels is expected to generate 0.97 times more return on investment than HNB Finance. However, Sigiriya Village Hotels is 1.03 times less risky than HNB Finance. It trades about 0.25 of its potential returns per unit of risk. HNB Finance is currently generating about 0.09 per unit of risk. If you would invest 3,200 in Sigiriya Village Hotels on September 2, 2024 and sell it today you would earn a total of 1,380 from holding Sigiriya Village Hotels or generate 43.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Sigiriya Village Hotels vs. HNB Finance
Performance |
| Timeline |
| Sigiriya Village Hotels |
| HNB Finance |
Sigiriya Village and HNB Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sigiriya Village and HNB Finance
The main advantage of trading using opposite Sigiriya Village and HNB Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sigiriya Village position performs unexpectedly, HNB Finance 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 HNB Finance will offset losses from the drop in HNB Finance's long position.| Sigiriya Village vs. Convenience Foods PLC | Sigiriya Village vs. Janashakthi Insurance | Sigiriya Village vs. RENUKA FOODS PLC | Sigiriya Village vs. Hotel Sigiriya PLC |
| HNB Finance vs. Prime Lands Residencies | HNB Finance vs. VIDULLANKA PLC | HNB Finance vs. EX PACK RUGATED CARTONS |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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