Correlation Between Union Bank and Pan Asia
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By analyzing existing cross correlation between Union Bank and Pan Asia Banking, you can compare the effects of market volatilities on Union Bank and Pan Asia 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 Pan Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Bank and Pan Asia.
Diversification Opportunities for Union Bank and Pan Asia
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Union and Pan is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Union Bank and Pan Asia Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Asia Banking 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 Pan Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Asia Banking has no effect on the direction of Union Bank i.e., Union Bank and Pan Asia go up and down completely randomly.
Pair Corralation between Union Bank and Pan Asia
Assuming the 90 days trading horizon Union Bank is expected to generate 5.41 times less return on investment than Pan Asia. But when comparing it to its historical volatility, Union Bank is 1.34 times less risky than Pan Asia. It trades about 0.07 of its potential returns per unit of risk. Pan Asia Banking is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,670 in Pan Asia Banking on September 20, 2024 and sell it today you would earn a total of 340.00 from holding Pan Asia Banking or generate 12.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Union Bank vs. Pan Asia Banking
Performance |
| Timeline |
| Union Bank |
| Pan Asia Banking |
Union Bank and Pan Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Bank and Pan Asia
The main advantage of trading using opposite Union Bank and Pan Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Bank position performs unexpectedly, Pan Asia 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 Pan Asia will offset losses from the drop in Pan Asia'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 |
| Pan Asia vs. Lanka Credit and | Pan Asia vs. VIDULLANKA PLC | Pan Asia vs. Carson Cumberbatch PLC | Pan Asia vs. Peoples Insurance 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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