Correlation Between Eden Hotel and Pan Asia
Specify exactly 2 symbols:
By analyzing existing cross correlation between Eden Hotel Lanka and Pan Asia Banking, you can compare the effects of market volatilities on Eden Hotel and Pan Asia 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 Pan Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eden Hotel and Pan Asia.
Diversification Opportunities for Eden Hotel and Pan Asia
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eden and Pan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Eden Hotel Lanka and Pan Asia Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Asia Banking 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 Pan Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Asia Banking has no effect on the direction of Eden Hotel i.e., Eden Hotel and Pan Asia go up and down completely randomly.
Pair Corralation between Eden Hotel and Pan Asia
Assuming the 90 days trading horizon Eden Hotel Lanka is expected to generate 1.21 times more return on investment than Pan Asia. However, Eden Hotel is 1.21 times more volatile than Pan Asia Banking. It trades about 0.08 of its potential returns per unit of risk. Pan Asia Banking is currently generating about 0.09 per unit of risk. If you would invest 1,060 in Eden Hotel Lanka on September 4, 2024 and sell it today you would earn a total of 440.00 from holding Eden Hotel Lanka or generate 41.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eden Hotel Lanka vs. Pan Asia Banking
Performance |
| Timeline |
| Eden Hotel Lanka |
| Pan Asia Banking |
Eden Hotel and Pan Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eden Hotel and Pan Asia
The main advantage of trading using opposite Eden Hotel and Pan Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eden Hotel position performs unexpectedly, Pan Asia 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 Pan Asia will offset losses from the drop in Pan Asia's long position.| Eden Hotel vs. Carson Cumberbatch PLC | Eden Hotel vs. Nations Trust Bank | Eden Hotel vs. Distilleries Company of |
| Pan Asia vs. Lion Brewery Ceylon | Pan Asia vs. COMMERCIAL BANK OF | Pan Asia vs. Ceylon Beverage Holdings | Pan Asia 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |