Correlation Between Jat Holdings and Lion Brewery
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By analyzing existing cross correlation between Jat Holdings PLC and Lion Brewery Ceylon, you can compare the effects of market volatilities on Jat Holdings and Lion Brewery 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 Lion Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jat Holdings and Lion Brewery.
Diversification Opportunities for Jat Holdings and Lion Brewery
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jat and Lion is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Jat Holdings PLC and Lion Brewery Ceylon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion Brewery Ceylon 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 Lion Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion Brewery Ceylon has no effect on the direction of Jat Holdings i.e., Jat Holdings and Lion Brewery go up and down completely randomly.
Pair Corralation between Jat Holdings and Lion Brewery
Assuming the 90 days trading horizon Jat Holdings PLC is expected to generate 0.91 times more return on investment than Lion Brewery. However, Jat Holdings PLC is 1.1 times less risky than Lion Brewery. It trades about 0.19 of its potential returns per unit of risk. Lion Brewery Ceylon is currently generating about 0.09 per unit of risk. If you would invest 1,590 in Jat Holdings PLC on September 2, 2024 and sell it today you would earn a total of 370.00 from holding Jat Holdings PLC or generate 23.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.33% |
| Values | Daily Returns |
Jat Holdings PLC vs. Lion Brewery Ceylon
Performance |
| Timeline |
| Jat Holdings PLC |
| Lion Brewery Ceylon |
Jat Holdings and Lion Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jat Holdings and Lion Brewery
The main advantage of trading using opposite Jat Holdings and Lion Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jat Holdings position performs unexpectedly, Lion Brewery 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 Lion Brewery will offset losses from the drop in Lion Brewery's long position.| Jat Holdings vs. Prime Lands Residencies | Jat Holdings vs. VIDULLANKA PLC | Jat Holdings vs. EX PACK RUGATED CARTONS |
| Lion Brewery vs. Prime Lands Residencies | Lion Brewery vs. VIDULLANKA PLC | Lion Brewery vs. EX PACK RUGATED CARTONS |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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