Correlation Between Pan Asia and Lanka Credit
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By analyzing existing cross correlation between Pan Asia Banking and Lanka Credit and, you can compare the effects of market volatilities on Pan Asia 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 Pan Asia with a short position of Lanka Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pan Asia and Lanka Credit.
Diversification Opportunities for Pan Asia and Lanka Credit
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pan and Lanka is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Pan Asia Banking and Lanka Credit and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lanka Credit and Pan Asia 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 Pan Asia Banking 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 Pan Asia i.e., Pan Asia and Lanka Credit go up and down completely randomly.
Pair Corralation between Pan Asia and Lanka Credit
Assuming the 90 days trading horizon Pan Asia Banking is expected to generate 0.67 times more return on investment than Lanka Credit. However, Pan Asia Banking is 1.48 times less risky than Lanka Credit. It trades about 0.11 of its potential returns per unit of risk. Lanka Credit and is currently generating about 0.02 per unit of risk. If you would invest 920.00 in Pan Asia Banking on September 24, 2024 and sell it today you would earn a total of 2,070 from holding Pan Asia Banking or generate 225.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Pan Asia Banking vs. Lanka Credit and
Performance |
Timeline |
Pan Asia Banking |
Lanka Credit |
Pan Asia and Lanka Credit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pan Asia and Lanka Credit
The main advantage of trading using opposite Pan Asia and Lanka Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pan Asia 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.Pan Asia vs. HNB Finance | Pan Asia vs. Prime Lands Residencies | Pan Asia vs. Jat Holdings PLC | Pan Asia vs. Lanka Credit and |
Lanka Credit vs. HNB Finance | Lanka Credit vs. Prime Lands Residencies | Lanka Credit vs. Jat Holdings PLC | Lanka Credit vs. VIDULLANKA 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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