Correlation Between Union Bank and COMMERCIAL BANK
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By analyzing existing cross correlation between Union Bank and COMMERCIAL BANK OF, you can compare the effects of market volatilities on Union Bank 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 Union Bank with a short position of COMMERCIAL BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Bank and COMMERCIAL BANK.
Diversification Opportunities for Union Bank and COMMERCIAL BANK
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Union and COMMERCIAL is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Union Bank and COMMERCIAL BANK OF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMMERCIAL BANK and Union 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 Union Bank 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 Union Bank i.e., Union Bank and COMMERCIAL BANK go up and down completely randomly.
Pair Corralation between Union Bank and COMMERCIAL BANK
Assuming the 90 days trading horizon Union Bank is expected to generate 1.99 times less return on investment than COMMERCIAL BANK. In addition to that, Union Bank is 1.05 times more volatile than COMMERCIAL BANK OF. It trades about 0.05 of its total potential returns per unit of risk. COMMERCIAL BANK OF is currently generating about 0.1 per unit of volatility. If you would invest 4,130 in COMMERCIAL BANK OF on September 20, 2024 and sell it today you would earn a total of 6,320 from holding COMMERCIAL BANK OF or generate 153.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Union Bank vs. COMMERCIAL BANK OF
Performance |
| Timeline |
| Union Bank |
| COMMERCIAL BANK |
Union Bank and COMMERCIAL BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Bank and COMMERCIAL BANK
The main advantage of trading using opposite Union Bank and COMMERCIAL BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Bank 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.| Union Bank vs. Lanka Credit and | Union Bank vs. VIDULLANKA PLC | Union Bank vs. Carson Cumberbatch PLC | Union Bank vs. Peoples Insurance PLC |
| COMMERCIAL BANK vs. National Development Bank | COMMERCIAL BANK vs. DFCC Bank PLC | COMMERCIAL BANK vs. Asiri Surgical Hospital | COMMERCIAL BANK vs. Sampath Bank 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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