Correlation Between Aitken Spence and Pegasus Hotels
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By analyzing existing cross correlation between Aitken Spence Hotel and Pegasus Hotels of, you can compare the effects of market volatilities on Aitken Spence and Pegasus 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 Pegasus Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aitken Spence and Pegasus Hotels.
Diversification Opportunities for Aitken Spence and Pegasus Hotels
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aitken and Pegasus is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Aitken Spence Hotel and Pegasus Hotels of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pegasus 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 Pegasus Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pegasus Hotels has no effect on the direction of Aitken Spence i.e., Aitken Spence and Pegasus Hotels go up and down completely randomly.
Pair Corralation between Aitken Spence and Pegasus Hotels
Assuming the 90 days trading horizon Aitken Spence is expected to generate 12.97 times less return on investment than Pegasus Hotels. But when comparing it to its historical volatility, Aitken Spence Hotel is 2.56 times less risky than Pegasus Hotels. It trades about 0.02 of its potential returns per unit of risk. Pegasus Hotels of is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,360 in Pegasus Hotels of on August 27, 2024 and sell it today you would earn a total of 1,470 from holding Pegasus Hotels of or generate 62.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.02% |
| Values | Daily Returns |
Aitken Spence Hotel vs. Pegasus Hotels of
Performance |
| Timeline |
| Aitken Spence Hotel |
| Pegasus Hotels |
Aitken Spence and Pegasus Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aitken Spence and Pegasus Hotels
The main advantage of trading using opposite Aitken Spence and Pegasus Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aitken Spence position performs unexpectedly, Pegasus 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 Pegasus Hotels will offset losses from the drop in Pegasus Hotels' 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 |
| Pegasus Hotels vs. Asiri Surgical Hospital | Pegasus Hotels vs. Commercial Credit and | Pegasus Hotels vs. National Development Bank | Pegasus Hotels vs. DFCC Bank 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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