Correlation Between Carson Cumberbatch and Aitken Spence
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By analyzing existing cross correlation between Carson Cumberbatch PLC and Aitken Spence Hotel, you can compare the effects of market volatilities on Carson Cumberbatch and Aitken Spence 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 Carson Cumberbatch with a short position of Aitken Spence. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carson Cumberbatch and Aitken Spence.
Diversification Opportunities for Carson Cumberbatch and Aitken Spence
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Carson and Aitken is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Carson Cumberbatch PLC and Aitken Spence Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aitken Spence Hotel and Carson Cumberbatch 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 Carson Cumberbatch PLC are associated (or correlated) with Aitken Spence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aitken Spence Hotel has no effect on the direction of Carson Cumberbatch i.e., Carson Cumberbatch and Aitken Spence go up and down completely randomly.
Pair Corralation between Carson Cumberbatch and Aitken Spence
Assuming the 90 days trading horizon Carson Cumberbatch PLC is expected to generate 1.0 times more return on investment than Aitken Spence. However, Carson Cumberbatch is 1.0 times more volatile than Aitken Spence Hotel. It trades about 0.03 of its potential returns per unit of risk. Aitken Spence Hotel is currently generating about 0.03 per unit of risk. If you would invest 28,000 in Carson Cumberbatch PLC on September 3, 2024 and sell it today you would earn a total of 5,400 from holding Carson Cumberbatch PLC or generate 19.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.17% |
| Values | Daily Returns |
Carson Cumberbatch PLC vs. Aitken Spence Hotel
Performance |
| Timeline |
| Carson Cumberbatch PLC |
| Aitken Spence Hotel |
Carson Cumberbatch and Aitken Spence Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carson Cumberbatch and Aitken Spence
The main advantage of trading using opposite Carson Cumberbatch and Aitken Spence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carson Cumberbatch position performs unexpectedly, Aitken Spence 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 Aitken Spence will offset losses from the drop in Aitken Spence's long position.| Carson Cumberbatch vs. Merchant Bank of | Carson Cumberbatch vs. RENUKA FOODS PLC | Carson Cumberbatch vs. HATTON NATIONAL BANK | Carson Cumberbatch vs. COMMERCIAL BANK OF |
| Aitken Spence vs. Lanka Credit and | Aitken Spence vs. VIDULLANKA PLC | Aitken Spence vs. Carson Cumberbatch PLC | Aitken Spence vs. Peoples Insurance 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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