Correlation Between HVA Foods and SEYLAN BANK
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By analyzing existing cross correlation between HVA Foods PLC and SEYLAN BANK PLC, you can compare the effects of market volatilities on HVA Foods and SEYLAN 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 HVA Foods with a short position of SEYLAN BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of HVA Foods and SEYLAN BANK.
Diversification Opportunities for HVA Foods and SEYLAN BANK
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HVA and SEYLAN is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding HVA Foods PLC and SEYLAN BANK PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEYLAN BANK PLC and HVA Foods 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 HVA Foods PLC are associated (or correlated) with SEYLAN BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEYLAN BANK PLC has no effect on the direction of HVA Foods i.e., HVA Foods and SEYLAN BANK go up and down completely randomly.
Pair Corralation between HVA Foods and SEYLAN BANK
Assuming the 90 days trading horizon HVA Foods is expected to generate 1.08 times less return on investment than SEYLAN BANK. In addition to that, HVA Foods is 2.44 times more volatile than SEYLAN BANK PLC. It trades about 0.1 of its total potential returns per unit of risk. SEYLAN BANK PLC is currently generating about 0.27 per unit of volatility. If you would invest 3,400 in SEYLAN BANK PLC on September 15, 2024 and sell it today you would earn a total of 1,190 from holding SEYLAN BANK PLC or generate 35.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
HVA Foods PLC vs. SEYLAN BANK PLC
Performance |
Timeline |
HVA Foods PLC |
SEYLAN BANK PLC |
HVA Foods and SEYLAN BANK Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HVA Foods and SEYLAN BANK
The main advantage of trading using opposite HVA Foods and SEYLAN BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HVA Foods position performs unexpectedly, SEYLAN 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 SEYLAN BANK will offset losses from the drop in SEYLAN BANK's long position.HVA Foods vs. Lanka Credit and | HVA Foods vs. VIDULLANKA PLC | HVA Foods vs. Carson Cumberbatch PLC | HVA Foods vs. Peoples Insurance PLC |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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