Correlation Between Union Bank and Xito SA
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By analyzing existing cross correlation between Union Bank and xito SA XITO, you can compare the effects of market volatilities on Union Bank and Xito SA 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 Xito SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Bank and Xito SA.
Diversification Opportunities for Union Bank and Xito SA
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Union and Xito is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Union Bank and xito SA XITO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on xito SA XITO 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 Xito SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of xito SA XITO has no effect on the direction of Union Bank i.e., Union Bank and Xito SA go up and down completely randomly.
Pair Corralation between Union Bank and Xito SA
Assuming the 90 days trading horizon Union Bank is expected to generate 0.8 times more return on investment than Xito SA. However, Union Bank is 1.24 times less risky than Xito SA. It trades about -0.14 of its potential returns per unit of risk. xito SA XITO is currently generating about -0.38 per unit of risk. If you would invest 1,000.00 in Union Bank on September 2, 2024 and sell it today you would lose (30.00) from holding Union Bank or give up 3.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Union Bank vs. xito SA XITO
Performance |
| Timeline |
| Union Bank |
| xito SA XITO |
Union Bank and Xito SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Bank and Xito SA
The main advantage of trading using opposite Union Bank and Xito SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Bank position performs unexpectedly, Xito SA 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 Xito SA will offset losses from the drop in Xito SA's long position.| Union Bank vs. Ceylon Guardian Investment | Union Bank vs. HATTON NATIONAL BANK | Union Bank vs. Convenience Foods PLC | Union Bank vs. National Development Bank |
| Xito SA vs. Peoples Insurance PLC | Xito SA vs. HATTON NATIONAL BANK | Xito SA vs. Union Bank | Xito SA vs. Lanka Realty Investments |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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