Correlation Between HNB Finance and PEOPLES LEASING
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By analyzing existing cross correlation between HNB Finance and PEOPLES LEASING FINANCE, you can compare the effects of market volatilities on HNB Finance and PEOPLES LEASING 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 HNB Finance with a short position of PEOPLES LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNB Finance and PEOPLES LEASING.
Diversification Opportunities for HNB Finance and PEOPLES LEASING
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HNB and PEOPLES is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding HNB Finance and PEOPLES LEASING FINANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEOPLES LEASING FINANCE and HNB Finance 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 HNB Finance are associated (or correlated) with PEOPLES LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEOPLES LEASING FINANCE has no effect on the direction of HNB Finance i.e., HNB Finance and PEOPLES LEASING go up and down completely randomly.
Pair Corralation between HNB Finance and PEOPLES LEASING
Assuming the 90 days trading horizon HNB Finance is expected to under-perform the PEOPLES LEASING. In addition to that, HNB Finance is 2.9 times more volatile than PEOPLES LEASING FINANCE. It trades about -0.02 of its total potential returns per unit of risk. PEOPLES LEASING FINANCE is currently generating about 0.32 per unit of volatility. If you would invest 1,170 in PEOPLES LEASING FINANCE on September 25, 2024 and sell it today you would earn a total of 410.00 from holding PEOPLES LEASING FINANCE or generate 35.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
HNB Finance vs. PEOPLES LEASING FINANCE
Performance |
Timeline |
HNB Finance |
PEOPLES LEASING FINANCE |
HNB Finance and PEOPLES LEASING Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HNB Finance and PEOPLES LEASING
The main advantage of trading using opposite HNB Finance and PEOPLES LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNB Finance position performs unexpectedly, PEOPLES LEASING 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 PEOPLES LEASING will offset losses from the drop in PEOPLES LEASING's long position.HNB Finance vs. Prime Lands Residencies | HNB Finance vs. Jat Holdings PLC | HNB Finance vs. Lanka Credit and | HNB Finance vs. VIDULLANKA PLC |
PEOPLES LEASING vs. HNB Finance | PEOPLES LEASING vs. Prime Lands Residencies | PEOPLES LEASING vs. Jat Holdings PLC | PEOPLES LEASING vs. Lanka Credit and |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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