Correlation Between Central Industries and Pegasus Hotels
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By analyzing existing cross correlation between Central Industries PLC and Pegasus Hotels of, you can compare the effects of market volatilities on Central Industries 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 Central Industries with a short position of Pegasus Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Industries and Pegasus Hotels.
Diversification Opportunities for Central Industries and Pegasus Hotels
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Central and Pegasus is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Central Industries PLC and Pegasus Hotels of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pegasus Hotels and Central Industries 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 Central Industries PLC 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 Central Industries i.e., Central Industries and Pegasus Hotels go up and down completely randomly.
Pair Corralation between Central Industries and Pegasus Hotels
If you would invest 2,180 in Pegasus Hotels of on September 14, 2024 and sell it today you would earn a total of 1,590 from holding Pegasus Hotels of or generate 72.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Central Industries PLC vs. Pegasus Hotels of
Performance |
| Timeline |
| Central Industries PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Pegasus Hotels |
Central Industries and Pegasus Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Industries and Pegasus Hotels
The main advantage of trading using opposite Central Industries and Pegasus Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Industries 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.| Central Industries vs. Ceylon Hotels | Central Industries vs. Lanka Milk Foods | Central Industries vs. Peoples Insurance PLC | Central Industries vs. Ceylinco Insurance PLC |
| Pegasus Hotels vs. Renuka Agri Foods | Pegasus Hotels vs. Ceylon Cold Stores | Pegasus Hotels vs. Palm Garden Hotels | Pegasus Hotels vs. Galadari Hotels Lanka |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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