Correlation Between Galadari Hotels and Kandy Hotels
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By analyzing existing cross correlation between Galadari Hotels Lanka and Kandy Hotels, you can compare the effects of market volatilities on Galadari Hotels and Kandy 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 Galadari Hotels with a short position of Kandy Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galadari Hotels and Kandy Hotels.
Diversification Opportunities for Galadari Hotels and Kandy Hotels
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Galadari and Kandy is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Galadari Hotels Lanka and Kandy Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandy Hotels and Galadari Hotels 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 Galadari Hotels Lanka are associated (or correlated) with Kandy Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kandy Hotels has no effect on the direction of Galadari Hotels i.e., Galadari Hotels and Kandy Hotels go up and down completely randomly.
Pair Corralation between Galadari Hotels and Kandy Hotels
Assuming the 90 days trading horizon Galadari Hotels is expected to generate 2.23 times less return on investment than Kandy Hotels. But when comparing it to its historical volatility, Galadari Hotels Lanka is 1.03 times less risky than Kandy Hotels. It trades about 0.19 of its potential returns per unit of risk. Kandy Hotels is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 800.00 in Kandy Hotels on August 31, 2024 and sell it today you would earn a total of 150.00 from holding Kandy Hotels or generate 18.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galadari Hotels Lanka vs. Kandy Hotels
Performance |
| Timeline |
| Galadari Hotels Lanka |
| Kandy Hotels |
Galadari Hotels and Kandy Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galadari Hotels and Kandy Hotels
The main advantage of trading using opposite Galadari Hotels and Kandy Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galadari Hotels position performs unexpectedly, Kandy 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 Kandy Hotels will offset losses from the drop in Kandy Hotels' long position.| Galadari Hotels vs. HNB Finance | Galadari Hotels vs. Prime Lands Residencies | Galadari Hotels vs. Jat Holdings PLC | Galadari Hotels vs. E M L |
| Kandy Hotels vs. Ceylinco Insurance PLC | Kandy Hotels vs. HATTON NATIONAL BANK | Kandy Hotels vs. Softlogic Life Insurance | Kandy Hotels 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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