Correlation Between Commercial Credit and Sampath Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between Commercial Credit and and Sampath Bank PLC, you can compare the effects of market volatilities on Commercial Credit and Sampath 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 Commercial Credit with a short position of Sampath Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commercial Credit and Sampath Bank.
Diversification Opportunities for Commercial Credit and Sampath Bank
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Commercial and Sampath is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Commercial Credit and and Sampath Bank PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sampath Bank PLC and Commercial Credit 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 Commercial Credit and are associated (or correlated) with Sampath Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sampath Bank PLC has no effect on the direction of Commercial Credit i.e., Commercial Credit and Sampath Bank go up and down completely randomly.
Pair Corralation between Commercial Credit and Sampath Bank
Assuming the 90 days trading horizon Commercial Credit and is expected to generate 1.48 times more return on investment than Sampath Bank. However, Commercial Credit is 1.48 times more volatile than Sampath Bank PLC. It trades about 0.35 of its potential returns per unit of risk. Sampath Bank PLC is currently generating about 0.47 per unit of risk. If you would invest 3,170 in Commercial Credit and on September 16, 2024 and sell it today you would earn a total of 1,570 from holding Commercial Credit and or generate 49.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Commercial Credit and vs. Sampath Bank PLC
Performance |
Timeline |
Commercial Credit |
Sampath Bank PLC |
Commercial Credit and Sampath Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Commercial Credit and Sampath Bank
The main advantage of trading using opposite Commercial Credit and Sampath Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commercial Credit position performs unexpectedly, Sampath 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 Sampath Bank will offset losses from the drop in Sampath Bank's long position.Commercial Credit vs. Arpico Insurance | Commercial Credit vs. Renuka Agri Foods | Commercial Credit vs. Distilleries Company of | Commercial Credit vs. Ceylon Guardian Investment |
Sampath Bank vs. Lanka Credit and | Sampath Bank vs. VIDULLANKA PLC | Sampath Bank vs. Carson Cumberbatch PLC | Sampath Bank 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Money Managers Screen money managers from public funds and ETFs managed around the world |