Correlation Between HNB Finance and Amana Bank
Specify exactly 2 symbols:
By analyzing existing cross correlation between HNB Finance and Amana Bank, you can compare the effects of market volatilities on HNB Finance and Amana 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 HNB Finance with a short position of Amana Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNB Finance and Amana Bank.
Diversification Opportunities for HNB Finance and Amana Bank
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HNB and Amana is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding HNB Finance and Amana Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amana Bank 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 Amana Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amana Bank has no effect on the direction of HNB Finance i.e., HNB Finance and Amana Bank go up and down completely randomly.
Pair Corralation between HNB Finance and Amana Bank
Assuming the 90 days trading horizon HNB Finance is expected to under-perform the Amana Bank. In addition to that, HNB Finance is 4.18 times more volatile than Amana Bank. It trades about -0.03 of its total potential returns per unit of risk. Amana Bank is currently generating about 0.06 per unit of volatility. If you would invest 2,340 in Amana Bank on October 3, 2024 and sell it today you would earn a total of 80.00 from holding Amana Bank or generate 3.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
HNB Finance vs. Amana Bank
Performance |
Timeline |
HNB Finance |
Amana Bank |
HNB Finance and Amana Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HNB Finance and Amana Bank
The main advantage of trading using opposite HNB Finance and Amana Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNB Finance position performs unexpectedly, Amana 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 Amana Bank will offset losses from the drop in Amana Bank's long position.HNB Finance vs. Asian Hotels and | HNB Finance vs. Hotel Sigiriya PLC | HNB Finance vs. Aitken Spence Hotel | HNB Finance vs. Galadari Hotels Lanka |
Amana Bank vs. Janashakthi Insurance | Amana Bank vs. DFCC Bank PLC | Amana Bank vs. Ceylinco Insurance PLC | Amana Bank vs. Pan Asia Banking |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Transaction History View history of all your transactions and understand their impact on performance |