Correlation Between Aitken Spence and Kandy Hotels
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aitken Spence Hotel and Kandy Hotels, you can compare the effects of market volatilities on Aitken Spence and Kandy 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 Aitken Spence with a short position of Kandy Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aitken Spence and Kandy Hotels.
Diversification Opportunities for Aitken Spence and Kandy Hotels
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aitken and Kandy is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Aitken Spence Hotel and Kandy Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandy 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 Kandy Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kandy Hotels has no effect on the direction of Aitken Spence i.e., Aitken Spence and Kandy Hotels go up and down completely randomly.
Pair Corralation between Aitken Spence and Kandy Hotels
Assuming the 90 days trading horizon Aitken Spence Hotel is expected to generate 0.68 times more return on investment than Kandy Hotels. However, Aitken Spence Hotel is 1.46 times less risky than Kandy Hotels. It trades about 0.33 of its potential returns per unit of risk. Kandy Hotels is currently generating about 0.18 per unit of risk. If you would invest 5,990 in Aitken Spence Hotel on August 28, 2024 and sell it today you would earn a total of 580.00 from holding Aitken Spence Hotel or generate 9.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aitken Spence Hotel vs. Kandy Hotels
Performance |
| Timeline |
| Aitken Spence Hotel |
| Kandy Hotels |
Aitken Spence and Kandy Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aitken Spence and Kandy Hotels
The main advantage of trading using opposite Aitken Spence and Kandy Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aitken Spence position performs unexpectedly, Kandy 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 Kandy Hotels will offset losses from the drop in Kandy Hotels' long position.| Aitken Spence vs. Browns Beach Hotels | Aitken Spence vs. Trans Asia Hotels | Aitken Spence vs. Kandy Hotels | Aitken Spence vs. Lanka Realty Investments |
| Kandy Hotels vs. COMMERCIAL BANK OF | Kandy Hotels vs. Convenience Foods PLC | Kandy Hotels vs. Sampath Bank PLC | Kandy Hotels vs. HVA Foods 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |