Correlation Between Prime Lands and Union Bank
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By analyzing existing cross correlation between Prime Lands Residencies and Union Bank, you can compare the effects of market volatilities on Prime Lands and Union 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 Prime Lands with a short position of Union Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prime Lands and Union Bank.
Diversification Opportunities for Prime Lands and Union Bank
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Prime and Union is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Prime Lands Residencies and Union Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Bank and Prime Lands 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 Prime Lands Residencies are associated (or correlated) with Union Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Bank has no effect on the direction of Prime Lands i.e., Prime Lands and Union Bank go up and down completely randomly.
Pair Corralation between Prime Lands and Union Bank
Assuming the 90 days trading horizon Prime Lands Residencies is expected to generate 1.61 times more return on investment than Union Bank. However, Prime Lands is 1.61 times more volatile than Union Bank. It trades about 0.36 of its potential returns per unit of risk. Union Bank is currently generating about 0.3 per unit of risk. If you would invest 960.00 in Prime Lands Residencies on September 25, 2024 and sell it today you would earn a total of 220.00 from holding Prime Lands Residencies or generate 22.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Prime Lands Residencies vs. Union Bank
Performance |
Timeline |
Prime Lands Residencies |
Union Bank |
Prime Lands and Union Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Prime Lands and Union Bank
The main advantage of trading using opposite Prime Lands and Union Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prime Lands position performs unexpectedly, Union 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 Union Bank will offset losses from the drop in Union Bank's long position.Prime Lands vs. HNB Finance | Prime Lands vs. Jat Holdings PLC | Prime Lands vs. Lanka Credit and | Prime Lands vs. VIDULLANKA PLC |
Union Bank vs. HNB Finance | Union Bank vs. Prime Lands Residencies | Union Bank vs. Jat Holdings PLC | Union Bank 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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