Correlation Between Jat Holdings and Kandy Hotels
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By analyzing existing cross correlation between Jat Holdings PLC and Kandy Hotels, you can compare the effects of market volatilities on Jat Holdings 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 Jat Holdings with a short position of Kandy Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jat Holdings and Kandy Hotels.
Diversification Opportunities for Jat Holdings and Kandy Hotels
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jat and Kandy is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Jat Holdings PLC and Kandy Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kandy Hotels 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 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 Jat Holdings i.e., Jat Holdings and Kandy Hotels go up and down completely randomly.
Pair Corralation between Jat Holdings and Kandy Hotels
Assuming the 90 days trading horizon Jat Holdings PLC is expected to generate 1.02 times more return on investment than Kandy Hotels. However, Jat Holdings is 1.02 times more volatile than Kandy Hotels. It trades about 0.01 of its potential returns per unit of risk. Kandy Hotels is currently generating about -0.08 per unit of risk. If you would invest 2,700 in Jat Holdings PLC on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Jat Holdings PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jat Holdings PLC vs. Kandy Hotels
Performance |
| Timeline |
| Jat Holdings PLC |
| Kandy Hotels |
Jat Holdings and Kandy Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jat Holdings and Kandy Hotels
The main advantage of trading using opposite Jat Holdings and Kandy Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jat Holdings 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.| Jat Holdings vs. Citrus Leisure PLC | Jat Holdings vs. HATTON NATIONAL BANK | Jat Holdings vs. Keells Food Products | Jat Holdings vs. ACL Plastics PLC |
| Kandy Hotels vs. RENUKA FOODS PLC | Kandy Hotels vs. Lighthouse Hotel PLC | Kandy Hotels vs. Renuka City Hotel | Kandy Hotels vs. Tangerine 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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