Correlation Between ACL Plastics and John Keells
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By analyzing existing cross correlation between ACL Plastics PLC and John Keells Hotels, you can compare the effects of market volatilities on ACL Plastics and John Keells 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 ACL Plastics with a short position of John Keells. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACL Plastics and John Keells.
Diversification Opportunities for ACL Plastics and John Keells
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ACL and John is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding ACL Plastics PLC and John Keells Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Keells Hotels and ACL Plastics 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 ACL Plastics PLC are associated (or correlated) with John Keells. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Keells Hotels has no effect on the direction of ACL Plastics i.e., ACL Plastics and John Keells go up and down completely randomly.
Pair Corralation between ACL Plastics and John Keells
Assuming the 90 days trading horizon ACL Plastics PLC is expected to generate 1.15 times more return on investment than John Keells. However, ACL Plastics is 1.15 times more volatile than John Keells Hotels. It trades about 0.06 of its potential returns per unit of risk. John Keells Hotels is currently generating about 0.03 per unit of risk. If you would invest 35,625 in ACL Plastics PLC on August 31, 2024 and sell it today you would earn a total of 12,525 from holding ACL Plastics PLC or generate 35.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.03% |
| Values | Daily Returns |
ACL Plastics PLC vs. John Keells Hotels
Performance |
| Timeline |
| ACL Plastics PLC |
| John Keells Hotels |
ACL Plastics and John Keells Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACL Plastics and John Keells
The main advantage of trading using opposite ACL Plastics and John Keells positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACL Plastics position performs unexpectedly, John Keells 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 John Keells will offset losses from the drop in John Keells' long position.| ACL Plastics vs. HNB Finance | ACL Plastics vs. Prime Lands Residencies | ACL Plastics vs. Jat Holdings PLC | ACL Plastics vs. E M L |
| John Keells vs. Tangerine Beach Hotels | John Keells vs. BROWNS INVESTMENTS PLC | John Keells vs. Ceylon Hotels | John Keells vs. Sri Lanka Telecom |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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