Correlation Between HNB Finance and Asian Hotels
Specify exactly 2 symbols:
By analyzing existing cross correlation between HNB Finance and Asian Hotels and, you can compare the effects of market volatilities on HNB Finance and Asian Hotels 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 Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNB Finance and Asian Hotels.
Diversification Opportunities for HNB Finance and Asian Hotels
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HNB and Asian is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding HNB Finance and Asian Hotels and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Hotels 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 Asian Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Hotels has no effect on the direction of HNB Finance i.e., HNB Finance and Asian Hotels go up and down completely randomly.
Pair Corralation between HNB Finance and Asian Hotels
Assuming the 90 days trading horizon HNB Finance is expected to under-perform the Asian Hotels. In addition to that, HNB Finance is 4.21 times more volatile than Asian Hotels and. It trades about -0.08 of its total potential returns per unit of risk. Asian Hotels and is currently generating about 0.21 per unit of volatility. If you would invest 5,500 in Asian Hotels and on September 24, 2024 and sell it today you would earn a total of 410.00 from holding Asian Hotels and or generate 7.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
HNB Finance vs. Asian Hotels and
Performance |
Timeline |
HNB Finance |
Asian Hotels |
HNB Finance and Asian Hotels Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HNB Finance and Asian Hotels
The main advantage of trading using opposite HNB Finance and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNB Finance position performs unexpectedly, Asian Hotels 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 Asian Hotels will offset losses from the drop in Asian Hotels' long position.HNB Finance vs. Keells Food Products | HNB Finance vs. Peoples Insurance PLC | HNB Finance vs. Pan Asia Banking | HNB Finance vs. Union Bank |
Asian Hotels vs. HNB Finance | Asian Hotels vs. Prime Lands Residencies | Asian Hotels vs. Jat Holdings PLC | Asian Hotels 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum |