Correlation Between Aitken Spence and Pan Asia
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By analyzing existing cross correlation between Aitken Spence Hotel and Pan Asia Banking, you can compare the effects of market volatilities on Aitken Spence and Pan Asia 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 Pan Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aitken Spence and Pan Asia.
Diversification Opportunities for Aitken Spence and Pan Asia
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aitken and Pan is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Aitken Spence Hotel and Pan Asia Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Asia Banking 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 Pan Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Asia Banking has no effect on the direction of Aitken Spence i.e., Aitken Spence and Pan Asia go up and down completely randomly.
Pair Corralation between Aitken Spence and Pan Asia
Assuming the 90 days trading horizon Aitken Spence is expected to generate 2.2 times less return on investment than Pan Asia. But when comparing it to its historical volatility, Aitken Spence Hotel is 1.05 times less risky than Pan Asia. It trades about 0.04 of its potential returns per unit of risk. Pan Asia Banking is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,950 in Pan Asia Banking on September 4, 2024 and sell it today you would earn a total of 750.00 from holding Pan Asia Banking or generate 38.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.57% |
| Values | Daily Returns |
Aitken Spence Hotel vs. Pan Asia Banking
Performance |
| Timeline |
| Aitken Spence Hotel |
| Pan Asia Banking |
Aitken Spence and Pan Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aitken Spence and Pan Asia
The main advantage of trading using opposite Aitken Spence and Pan Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aitken Spence position performs unexpectedly, Pan Asia 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 Pan Asia will offset losses from the drop in Pan Asia's long position.| Aitken Spence vs. SERENDIB HOTELS PLC | Aitken Spence vs. Convenience Foods PLC | Aitken Spence vs. BROWNS INVESTMENTS PLC | Aitken Spence vs. Palm Garden Hotels |
| Pan Asia vs. Lion Brewery Ceylon | Pan Asia vs. COMMERCIAL BANK OF | Pan Asia vs. Ceylon Beverage Holdings | Pan Asia vs. Amana Bank |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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