Correlation Between Jat Holdings and Palm Garden
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By analyzing existing cross correlation between Jat Holdings PLC and Palm Garden Hotels, you can compare the effects of market volatilities on Jat Holdings and Palm Garden 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 Palm Garden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jat Holdings and Palm Garden.
Diversification Opportunities for Jat Holdings and Palm Garden
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jat and Palm is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jat Holdings PLC and Palm Garden Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palm Garden 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 Palm Garden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palm Garden Hotels has no effect on the direction of Jat Holdings i.e., Jat Holdings and Palm Garden go up and down completely randomly.
Pair Corralation between Jat Holdings and Palm Garden
Assuming the 90 days trading horizon Jat Holdings is expected to generate 1.42 times less return on investment than Palm Garden. In addition to that, Jat Holdings is 1.21 times more volatile than Palm Garden Hotels. It trades about 0.16 of its total potential returns per unit of risk. Palm Garden Hotels is currently generating about 0.28 per unit of volatility. If you would invest 4,280 in Palm Garden Hotels on August 28, 2024 and sell it today you would earn a total of 430.00 from holding Palm Garden Hotels or generate 10.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jat Holdings PLC vs. Palm Garden Hotels
Performance |
| Timeline |
| Jat Holdings PLC |
| Palm Garden Hotels |
Jat Holdings and Palm Garden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jat Holdings and Palm Garden
The main advantage of trading using opposite Jat Holdings and Palm Garden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jat Holdings position performs unexpectedly, Palm Garden 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 Palm Garden will offset losses from the drop in Palm Garden's long position.| Jat Holdings vs. Convenience Foods PLC | Jat Holdings vs. Pegasus Hotels of | Jat Holdings vs. Arpico Insurance | Jat Holdings vs. RENUKA FOODS PLC |
| Palm Garden vs. SEYLAN BANK PLC | Palm Garden vs. Union Bank | Palm Garden vs. COMMERCIAL BANK OF | Palm Garden vs. Janashakthi Insurance |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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