Correlation Between Hotel Sigiriya and RENUKA FOODS
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By analyzing existing cross correlation between Hotel Sigiriya PLC and RENUKA FOODS PLC, you can compare the effects of market volatilities on Hotel Sigiriya and RENUKA FOODS 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 Hotel Sigiriya with a short position of RENUKA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hotel Sigiriya and RENUKA FOODS.
Diversification Opportunities for Hotel Sigiriya and RENUKA FOODS
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hotel and RENUKA is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Hotel Sigiriya PLC and RENUKA FOODS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RENUKA FOODS PLC and Hotel Sigiriya 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 Hotel Sigiriya PLC are associated (or correlated) with RENUKA FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RENUKA FOODS PLC has no effect on the direction of Hotel Sigiriya i.e., Hotel Sigiriya and RENUKA FOODS go up and down completely randomly.
Pair Corralation between Hotel Sigiriya and RENUKA FOODS
Assuming the 90 days trading horizon Hotel Sigiriya PLC is expected to generate 1.96 times more return on investment than RENUKA FOODS. However, Hotel Sigiriya is 1.96 times more volatile than RENUKA FOODS PLC. It trades about 0.35 of its potential returns per unit of risk. RENUKA FOODS PLC is currently generating about -0.12 per unit of risk. If you would invest 4,880 in Hotel Sigiriya PLC on August 31, 2024 and sell it today you would earn a total of 1,130 from holding Hotel Sigiriya PLC or generate 23.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Hotel Sigiriya PLC vs. RENUKA FOODS PLC
Performance |
| Timeline |
| Hotel Sigiriya PLC |
| RENUKA FOODS PLC |
Hotel Sigiriya and RENUKA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hotel Sigiriya and RENUKA FOODS
The main advantage of trading using opposite Hotel Sigiriya and RENUKA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hotel Sigiriya position performs unexpectedly, RENUKA FOODS 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 RENUKA FOODS will offset losses from the drop in RENUKA FOODS's long position.| Hotel Sigiriya vs. Ceylon Guardian Investment | Hotel Sigiriya vs. Lanka Milk Foods | Hotel Sigiriya vs. Hatton National Bank | Hotel Sigiriya vs. DFCC Bank PLC |
| RENUKA FOODS vs. Asian Hotels and | RENUKA FOODS vs. Lighthouse Hotel PLC | RENUKA FOODS vs. Seylan Bank PLC | RENUKA FOODS vs. Browns Beach 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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