Correlation Between E M and Nuwara Eliya
Specify exactly 2 symbols:
By analyzing existing cross correlation between E M L and Nuwara Eliya Hotels, you can compare the effects of market volatilities on E M and Nuwara Eliya 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 E M with a short position of Nuwara Eliya. Check out your portfolio center. Please also check ongoing floating volatility patterns of E M and Nuwara Eliya.
Diversification Opportunities for E M and Nuwara Eliya
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EMLN0000 and Nuwara is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding E M L and Nuwara Eliya Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuwara Eliya Hotels and E M 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 E M L are associated (or correlated) with Nuwara Eliya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuwara Eliya Hotels has no effect on the direction of E M i.e., E M and Nuwara Eliya go up and down completely randomly.
Pair Corralation between E M and Nuwara Eliya
Assuming the 90 days trading horizon E M L is expected to under-perform the Nuwara Eliya. But the stock apears to be less risky and, when comparing its historical volatility, E M L is 1.92 times less risky than Nuwara Eliya. The stock trades about -0.04 of its potential returns per unit of risk. The Nuwara Eliya Hotels is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 196,000 in Nuwara Eliya Hotels on August 30, 2024 and sell it today you would earn a total of 37,475 from holding Nuwara Eliya Hotels or generate 19.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 65.0% |
| Values | Daily Returns |
E M L vs. Nuwara Eliya Hotels
Performance |
| Timeline |
| E M L |
| Nuwara Eliya Hotels |
E M and Nuwara Eliya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E M and Nuwara Eliya
The main advantage of trading using opposite E M and Nuwara Eliya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E M position performs unexpectedly, Nuwara Eliya 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 Nuwara Eliya will offset losses from the drop in Nuwara Eliya's long position.| E M vs. EX PACK RUGATED CARTONS | E M vs. PANASIAN POWER PLC | E M vs. Distilleries Company of | E M vs. Palm Garden Hotels |
| Nuwara Eliya vs. EX PACK RUGATED CARTONS | Nuwara Eliya vs. PANASIAN POWER PLC | Nuwara Eliya vs. Distilleries Company of | Nuwara Eliya vs. Palm Garden Hotels |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |