Correlation Between Asian Hotels and Softlogic Life
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By analyzing existing cross correlation between Asian Hotels and and Softlogic Life Insurance, you can compare the effects of market volatilities on Asian Hotels and Softlogic Life 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 Asian Hotels with a short position of Softlogic Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asian Hotels and Softlogic Life.
Diversification Opportunities for Asian Hotels and Softlogic Life
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asian and Softlogic is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Asian Hotels and and Softlogic Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Softlogic Life Insurance and Asian Hotels 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 Asian Hotels and are associated (or correlated) with Softlogic Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Softlogic Life Insurance has no effect on the direction of Asian Hotels i.e., Asian Hotels and Softlogic Life go up and down completely randomly.
Pair Corralation between Asian Hotels and Softlogic Life
Assuming the 90 days trading horizon Asian Hotels and is expected to generate 0.78 times more return on investment than Softlogic Life. However, Asian Hotels and is 1.29 times less risky than Softlogic Life. It trades about 0.05 of its potential returns per unit of risk. Softlogic Life Insurance is currently generating about 0.03 per unit of risk. If you would invest 3,890 in Asian Hotels and on September 3, 2024 and sell it today you would earn a total of 1,810 from holding Asian Hotels and or generate 46.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.57% |
| Values | Daily Returns |
Asian Hotels and vs. Softlogic Life Insurance
Performance |
| Timeline |
| Asian Hotels |
| Softlogic Life Insurance |
Asian Hotels and Softlogic Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asian Hotels and Softlogic Life
The main advantage of trading using opposite Asian Hotels and Softlogic Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asian Hotels position performs unexpectedly, Softlogic Life 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 Softlogic Life will offset losses from the drop in Softlogic Life's long position.| Asian Hotels vs. Carson Cumberbatch PLC | Asian Hotels vs. Lanka Milk Foods | Asian Hotels vs. Citrus Leisure PLC | Asian Hotels vs. ACL Plastics PLC |
| Softlogic Life vs. Lanka Credit and | Softlogic Life vs. VIDULLANKA PLC | Softlogic Life vs. Carson Cumberbatch PLC | Softlogic Life vs. Peoples Insurance 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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