Correlation Between Aitken Spence and Browns Beach
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aitken Spence Hotel and Browns Beach Hotels, you can compare the effects of market volatilities on Aitken Spence and Browns Beach 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 Aitken Spence with a short position of Browns Beach. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aitken Spence and Browns Beach.
Diversification Opportunities for Aitken Spence and Browns Beach
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aitken and Browns is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Aitken Spence Hotel and Browns Beach Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Browns Beach Hotels and Aitken Spence 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 Aitken Spence Hotel are associated (or correlated) with Browns Beach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Browns Beach Hotels has no effect on the direction of Aitken Spence i.e., Aitken Spence and Browns Beach go up and down completely randomly.
Pair Corralation between Aitken Spence and Browns Beach
Assuming the 90 days trading horizon Aitken Spence is expected to generate 7.82 times less return on investment than Browns Beach. But when comparing it to its historical volatility, Aitken Spence Hotel is 2.28 times less risky than Browns Beach. It trades about 0.02 of its potential returns per unit of risk. Browns Beach Hotels is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,230 in Browns Beach Hotels on August 27, 2024 and sell it today you would earn a total of 360.00 from holding Browns Beach Hotels or generate 29.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.34% |
| Values | Daily Returns |
Aitken Spence Hotel vs. Browns Beach Hotels
Performance |
| Timeline |
| Aitken Spence Hotel |
| Browns Beach Hotels |
Aitken Spence and Browns Beach Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aitken Spence and Browns Beach
The main advantage of trading using opposite Aitken Spence and Browns Beach positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aitken Spence position performs unexpectedly, Browns Beach 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 Browns Beach will offset losses from the drop in Browns Beach's long position.| Aitken Spence vs. John Keells Hotels | Aitken Spence vs. Eden Hotel Lanka | Aitken Spence vs. HVA Foods PLC | Aitken Spence vs. Lighthouse Hotel PLC |
| Browns Beach vs. COMMERCIAL BANK OF | Browns Beach vs. National Development Bank | Browns Beach vs. Ceylon Hospitals PLC | Browns Beach vs. Union Chemicals Lanka |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |