Correlation Between Carson Cumberbatch and Kandy Hotels
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By analyzing existing cross correlation between Carson Cumberbatch PLC and Kandy Hotels, you can compare the effects of market volatilities on Carson Cumberbatch 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 Carson Cumberbatch with a short position of Kandy Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carson Cumberbatch and Kandy Hotels.
Diversification Opportunities for Carson Cumberbatch and Kandy Hotels
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carson and Kandy is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Carson Cumberbatch PLC and Kandy Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandy Hotels 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 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 Carson Cumberbatch i.e., Carson Cumberbatch and Kandy Hotels go up and down completely randomly.
Pair Corralation between Carson Cumberbatch and Kandy Hotels
Assuming the 90 days trading horizon Carson Cumberbatch is expected to generate 1.53 times less return on investment than Kandy Hotels. But when comparing it to its historical volatility, Carson Cumberbatch PLC is 1.13 times less risky than Kandy Hotels. It trades about 0.14 of its potential returns per unit of risk. Kandy Hotels is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 760.00 in Kandy Hotels on August 30, 2024 and sell it today you would earn a total of 190.00 from holding Kandy Hotels or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 84.75% |
| Values | Daily Returns |
Carson Cumberbatch PLC vs. Kandy Hotels
Performance |
| Timeline |
| Carson Cumberbatch PLC |
| Kandy Hotels |
Carson Cumberbatch and Kandy Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carson Cumberbatch and Kandy Hotels
The main advantage of trading using opposite Carson Cumberbatch and Kandy Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carson Cumberbatch 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.| Carson Cumberbatch vs. Lion Brewery Ceylon | Carson Cumberbatch vs. Lanka Milk Foods | Carson Cumberbatch vs. Arpico Insurance | Carson Cumberbatch vs. DFCC Bank PLC |
| Kandy Hotels vs. Ceylinco Insurance PLC | Kandy Hotels vs. HATTON NATIONAL BANK | Kandy Hotels vs. Softlogic Life Insurance | Kandy Hotels 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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