Correlation Between Eden Hotel and Softlogic Life
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By analyzing existing cross correlation between Eden Hotel Lanka and Softlogic Life Insurance, you can compare the effects of market volatilities on Eden Hotel and Softlogic Life 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 Eden Hotel with a short position of Softlogic Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eden Hotel and Softlogic Life.
Diversification Opportunities for Eden Hotel and Softlogic Life
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eden and Softlogic is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Eden Hotel Lanka and Softlogic Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Softlogic Life Insurance and Eden Hotel 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 Eden Hotel Lanka are associated (or correlated) with Softlogic Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Softlogic Life Insurance has no effect on the direction of Eden Hotel i.e., Eden Hotel and Softlogic Life go up and down completely randomly.
Pair Corralation between Eden Hotel and Softlogic Life
Assuming the 90 days trading horizon Eden Hotel Lanka is expected to generate 1.31 times more return on investment than Softlogic Life. However, Eden Hotel is 1.31 times more volatile than Softlogic Life Insurance. It trades about 0.19 of its potential returns per unit of risk. Softlogic Life Insurance is currently generating about 0.1 per unit of risk. If you would invest 1,150 in Eden Hotel Lanka on August 31, 2024 and sell it today you would earn a total of 310.00 from holding Eden Hotel Lanka or generate 26.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eden Hotel Lanka vs. Softlogic Life Insurance
Performance |
| Timeline |
| Eden Hotel Lanka |
| Softlogic Life Insurance |
Eden Hotel and Softlogic Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eden Hotel and Softlogic Life
The main advantage of trading using opposite Eden Hotel and Softlogic Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eden Hotel position performs unexpectedly, Softlogic Life 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 Softlogic Life will offset losses from the drop in Softlogic Life's long position.| Eden Hotel vs. Janashakthi Insurance | Eden Hotel vs. CEYLON HOSPITALS PLC | Eden Hotel vs. BROWNS INVESTMENTS PLC | Eden Hotel vs. Sampath Bank PLC |
| Softlogic Life vs. Renuka Agri Foods | Softlogic Life vs. Ceylon Tobacco | Softlogic Life vs. BROWNS INVESTMENTS PLC | Softlogic Life vs. Lanka Milk Foods |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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