Correlation Between Eden Hotel and Hatton National
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By analyzing existing cross correlation between Eden Hotel Lanka and Hatton National Bank, you can compare the effects of market volatilities on Eden Hotel and Hatton National 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 Hatton National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eden Hotel and Hatton National.
Diversification Opportunities for Eden Hotel and Hatton National
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eden and Hatton is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Eden Hotel Lanka and Hatton National Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hatton National Bank 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 Hatton National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hatton National Bank has no effect on the direction of Eden Hotel i.e., Eden Hotel and Hatton National go up and down completely randomly.
Pair Corralation between Eden Hotel and Hatton National
Assuming the 90 days trading horizon Eden Hotel Lanka is expected to under-perform the Hatton National. In addition to that, Eden Hotel is 1.0 times more volatile than Hatton National Bank. It trades about -0.59 of its total potential returns per unit of risk. Hatton National Bank is currently generating about -0.26 per unit of volatility. If you would invest 35,025 in Hatton National Bank on November 28, 2024 and sell it today you would lose (2,275) from holding Hatton National Bank or give up 6.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eden Hotel Lanka vs. Hatton National Bank
Performance |
| Timeline |
| Eden Hotel Lanka |
| Hatton National Bank |
Eden Hotel and Hatton National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eden Hotel and Hatton National
The main advantage of trading using opposite Eden Hotel and Hatton National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eden Hotel position performs unexpectedly, Hatton National 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 Hatton National will offset losses from the drop in Hatton National's long position.| Eden Hotel vs. Hotel Sigiriya PLC | Eden Hotel vs. Colombo Investment Trust | Eden Hotel vs. CEYLON HOSPITALS PLC | Eden Hotel vs. Carson Cumberbatch PLC |
| Hatton National vs. SERENDIB HOTELS PLC | Hatton National vs. Singhe Hospitals | Hatton National vs. CEYLINCO INSURANCE PLC | Hatton National vs. Renuka City Hotel |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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