Correlation Between Sri Lanka and COMMERCIAL BANK
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By analyzing existing cross correlation between Sri Lanka Telecom and COMMERCIAL BANK OF, you can compare the effects of market volatilities on Sri Lanka and COMMERCIAL 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 Sri Lanka with a short position of COMMERCIAL BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sri Lanka and COMMERCIAL BANK.
Diversification Opportunities for Sri Lanka and COMMERCIAL BANK
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sri and COMMERCIAL is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sri Lanka Telecom and COMMERCIAL BANK OF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMMERCIAL BANK and Sri Lanka 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 Sri Lanka Telecom are associated (or correlated) with COMMERCIAL BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMMERCIAL BANK has no effect on the direction of Sri Lanka i.e., Sri Lanka and COMMERCIAL BANK go up and down completely randomly.
Pair Corralation between Sri Lanka and COMMERCIAL BANK
Assuming the 90 days trading horizon Sri Lanka is expected to generate 15.92 times less return on investment than COMMERCIAL BANK. In addition to that, Sri Lanka is 1.11 times more volatile than COMMERCIAL BANK OF. It trades about 0.0 of its total potential returns per unit of risk. COMMERCIAL BANK OF is currently generating about 0.07 per unit of volatility. If you would invest 4,970 in COMMERCIAL BANK OF on August 27, 2024 and sell it today you would earn a total of 4,360 from holding COMMERCIAL BANK OF or generate 87.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sri Lanka Telecom vs. COMMERCIAL BANK OF
Performance |
| Timeline |
| Sri Lanka Telecom |
| COMMERCIAL BANK |
Sri Lanka and COMMERCIAL BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sri Lanka and COMMERCIAL BANK
The main advantage of trading using opposite Sri Lanka and COMMERCIAL BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sri Lanka position performs unexpectedly, COMMERCIAL 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 COMMERCIAL BANK will offset losses from the drop in COMMERCIAL BANK's long position.| Sri Lanka vs. Browns Beach Hotels | Sri Lanka vs. Mahaweli Reach Hotel | Sri Lanka vs. CEYLINCO INSURANCE PLC | Sri Lanka vs. Lanka Realty Investments |
| COMMERCIAL BANK vs. ACL Plastics PLC | COMMERCIAL BANK vs. Ceylon Hospitals PLC | COMMERCIAL BANK vs. Browns Beach Hotels | COMMERCIAL BANK vs. SERENDIB HOTELS 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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