Correlation Between National Development and Singhe Hospitals
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By analyzing existing cross correlation between National Development Bank and Singhe Hospitals, you can compare the effects of market volatilities on National Development and Singhe Hospitals 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 National Development with a short position of Singhe Hospitals. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Development and Singhe Hospitals.
Diversification Opportunities for National Development and Singhe Hospitals
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between National and Singhe is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding National Development Bank and Singhe Hospitals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singhe Hospitals and National Development 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 National Development Bank are associated (or correlated) with Singhe Hospitals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singhe Hospitals has no effect on the direction of National Development i.e., National Development and Singhe Hospitals go up and down completely randomly.
Pair Corralation between National Development and Singhe Hospitals
Assuming the 90 days trading horizon National Development Bank is expected to generate 0.59 times more return on investment than Singhe Hospitals. However, National Development Bank is 1.71 times less risky than Singhe Hospitals. It trades about 0.27 of its potential returns per unit of risk. Singhe Hospitals is currently generating about 0.01 per unit of risk. If you would invest 6,620 in National Development Bank on September 16, 2024 and sell it today you would earn a total of 1,890 from holding National Development Bank or generate 28.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
National Development Bank vs. Singhe Hospitals
Performance |
Timeline |
National Development Bank |
Singhe Hospitals |
National Development and Singhe Hospitals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with National Development and Singhe Hospitals
The main advantage of trading using opposite National Development and Singhe Hospitals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Development position performs unexpectedly, Singhe Hospitals 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 Singhe Hospitals will offset losses from the drop in Singhe Hospitals' long position.National Development vs. Singhe Hospitals | National Development vs. Amana Bank | National Development vs. Commercial Credit and | National Development vs. Seylan Bank 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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