Correlation Between HNB Finance and Keells Food
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By analyzing existing cross correlation between HNB Finance and Keells Food Products, you can compare the effects of market volatilities on HNB Finance and Keells Food 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 Keells Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of HNB Finance and Keells Food.
Diversification Opportunities for HNB Finance and Keells Food
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HNB and Keells is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding HNB Finance and Keells Food Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keells Food Products 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 Keells Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keells Food Products has no effect on the direction of HNB Finance i.e., HNB Finance and Keells Food go up and down completely randomly.
Pair Corralation between HNB Finance and Keells Food
Assuming the 90 days trading horizon HNB Finance is expected to generate 1.35 times more return on investment than Keells Food. However, HNB Finance is 1.35 times more volatile than Keells Food Products. It trades about 0.03 of its potential returns per unit of risk. Keells Food Products is currently generating about 0.02 per unit of risk. If you would invest 410.00 in HNB Finance on September 26, 2024 and sell it today you would earn a total of 60.00 from holding HNB Finance or generate 14.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 75.97% |
Values | Daily Returns |
HNB Finance vs. Keells Food Products
Performance |
Timeline |
HNB Finance |
Keells Food Products |
HNB Finance and Keells Food Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HNB Finance and Keells Food
The main advantage of trading using opposite HNB Finance and Keells Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HNB Finance position performs unexpectedly, Keells Food 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 Keells Food will offset losses from the drop in Keells Food's long position.HNB Finance vs. Prime Lands Residencies | HNB Finance vs. Jat Holdings PLC | HNB Finance vs. Lanka Credit and | HNB Finance vs. VIDULLANKA PLC |
Keells Food vs. HNB Finance | Keells Food vs. Prime Lands Residencies | Keells Food vs. Jat Holdings PLC | Keells Food 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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