Correlation Between Jat Holdings and Colombo Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jat Holdings PLC and Colombo Investment Trust, you can compare the effects of market volatilities on Jat Holdings and Colombo Investment 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 Jat Holdings with a short position of Colombo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jat Holdings and Colombo Investment.
Diversification Opportunities for Jat Holdings and Colombo Investment
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jat and Colombo is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Jat Holdings PLC and Colombo Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colombo Investment Trust and Jat Holdings 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 Jat Holdings PLC are associated (or correlated) with Colombo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Colombo Investment Trust has no effect on the direction of Jat Holdings i.e., Jat Holdings and Colombo Investment go up and down completely randomly.
Pair Corralation between Jat Holdings and Colombo Investment
Assuming the 90 days trading horizon Jat Holdings PLC is expected to generate 1.07 times more return on investment than Colombo Investment. However, Jat Holdings is 1.07 times more volatile than Colombo Investment Trust. It trades about 0.33 of its potential returns per unit of risk. Colombo Investment Trust is currently generating about 0.04 per unit of risk. If you would invest 1,970 in Jat Holdings PLC on September 14, 2024 and sell it today you would earn a total of 340.00 from holding Jat Holdings PLC or generate 17.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Jat Holdings PLC vs. Colombo Investment Trust
Performance |
| Timeline |
| Jat Holdings PLC |
| Colombo Investment Trust |
Jat Holdings and Colombo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jat Holdings and Colombo Investment
The main advantage of trading using opposite Jat Holdings and Colombo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jat Holdings position performs unexpectedly, Colombo Investment 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 Colombo Investment will offset losses from the drop in Colombo Investment's long position.| Jat Holdings vs. Peoples Insurance PLC | Jat Holdings vs. HVA Foods PLC | Jat Holdings vs. Ceylon Beverage Holdings | Jat Holdings vs. PEOPLES LEASING FINANCE |
| Colombo Investment vs. Jat Holdings PLC | Colombo Investment vs. Lanka Credit and | Colombo Investment vs. VIDULLANKA PLC | Colombo Investment vs. Carson Cumberbatch PLC |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |