Correlation Between VIDULLANKA PLC and Lanka Credit
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By analyzing existing cross correlation between VIDULLANKA PLC and Lanka Credit and, you can compare the effects of market volatilities on VIDULLANKA PLC and Lanka Credit 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 VIDULLANKA PLC with a short position of Lanka Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIDULLANKA PLC and Lanka Credit.
Diversification Opportunities for VIDULLANKA PLC and Lanka Credit
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between VIDULLANKA and Lanka is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding VIDULLANKA PLC and Lanka Credit and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lanka Credit and VIDULLANKA PLC 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 VIDULLANKA PLC are associated (or correlated) with Lanka Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lanka Credit has no effect on the direction of VIDULLANKA PLC i.e., VIDULLANKA PLC and Lanka Credit go up and down completely randomly.
Pair Corralation between VIDULLANKA PLC and Lanka Credit
Assuming the 90 days trading horizon VIDULLANKA PLC is expected to generate 1.52 times more return on investment than Lanka Credit. However, VIDULLANKA PLC is 1.52 times more volatile than Lanka Credit and. It trades about 0.03 of its potential returns per unit of risk. Lanka Credit and is currently generating about -0.25 per unit of risk. If you would invest 920.00 in VIDULLANKA PLC on August 27, 2024 and sell it today you would earn a total of 10.00 from holding VIDULLANKA PLC or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VIDULLANKA PLC vs. Lanka Credit and
Performance |
| Timeline |
| VIDULLANKA PLC |
| Lanka Credit |
VIDULLANKA PLC and Lanka Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIDULLANKA PLC and Lanka Credit
The main advantage of trading using opposite VIDULLANKA PLC and Lanka Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIDULLANKA PLC position performs unexpectedly, Lanka Credit 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 Lanka Credit will offset losses from the drop in Lanka Credit's long position.| VIDULLANKA PLC vs. Peoples Insurance PLC | VIDULLANKA PLC vs. CEYLINCO INSURANCE PLC | VIDULLANKA PLC vs. Commercial Credit and | VIDULLANKA PLC vs. HATTON NATIONAL BANK |
| Lanka Credit vs. Sigiriya Village Hotels | Lanka Credit vs. Union Chemicals Lanka | Lanka Credit vs. Sri Lanka Telecom | Lanka Credit vs. Distilleries Company of |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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