Correlation Between Jat Holdings and Eden Hotel
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By analyzing existing cross correlation between Jat Holdings PLC and Eden Hotel Lanka, you can compare the effects of market volatilities on Jat Holdings and Eden Hotel 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 Eden Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jat Holdings and Eden Hotel.
Diversification Opportunities for Jat Holdings and Eden Hotel
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jat and Eden is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jat Holdings PLC and Eden Hotel Lanka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eden Hotel Lanka 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 Eden Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eden Hotel Lanka has no effect on the direction of Jat Holdings i.e., Jat Holdings and Eden Hotel go up and down completely randomly.
Pair Corralation between Jat Holdings and Eden Hotel
Assuming the 90 days trading horizon Jat Holdings is expected to generate 1.08 times less return on investment than Eden Hotel. In addition to that, Jat Holdings is 1.05 times more volatile than Eden Hotel Lanka. It trades about 0.19 of its total potential returns per unit of risk. Eden Hotel Lanka is currently generating about 0.22 per unit of volatility. If you would invest 1,330 in Eden Hotel Lanka on August 28, 2024 and sell it today you would earn a total of 120.00 from holding Eden Hotel Lanka or generate 9.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Jat Holdings PLC vs. Eden Hotel Lanka
Performance |
| Timeline |
| Jat Holdings PLC |
| Eden Hotel Lanka |
Jat Holdings and Eden Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jat Holdings and Eden Hotel
The main advantage of trading using opposite Jat Holdings and Eden Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jat Holdings position performs unexpectedly, Eden Hotel 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 Eden Hotel will offset losses from the drop in Eden Hotel's long position.| Jat Holdings vs. John Keells Hotels | Jat Holdings vs. Arpico Insurance | Jat Holdings vs. Janashakthi Insurance | Jat Holdings vs. Tangerine Beach Hotels |
| Eden Hotel vs. Sanasa Development Bank | Eden Hotel vs. HDFC Bank of | Eden Hotel vs. COMMERCIAL BANK OF | Eden Hotel vs. Aitken Spence Hotel |
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 CEOs Directory module to screen CEOs from public companies around the world.
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