Correlation Between Kandy Hotels and Softlogic Life
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By analyzing existing cross correlation between Kandy Hotels and Softlogic Life Insurance, you can compare the effects of market volatilities on Kandy Hotels and Softlogic Life 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 Kandy Hotels with a short position of Softlogic Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandy Hotels and Softlogic Life.
Diversification Opportunities for Kandy Hotels and Softlogic Life
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kandy and Softlogic is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kandy Hotels and Softlogic Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Softlogic Life Insurance and Kandy Hotels 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 Kandy Hotels are associated (or correlated) with Softlogic Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Softlogic Life Insurance has no effect on the direction of Kandy Hotels i.e., Kandy Hotels and Softlogic Life go up and down completely randomly.
Pair Corralation between Kandy Hotels and Softlogic Life
Assuming the 90 days trading horizon Kandy Hotels is expected to generate 1.24 times more return on investment than Softlogic Life. However, Kandy Hotels is 1.24 times more volatile than Softlogic Life Insurance. It trades about 0.16 of its potential returns per unit of risk. Softlogic Life Insurance is currently generating about 0.1 per unit of risk. If you would invest 790.00 in Kandy Hotels on August 31, 2024 and sell it today you would earn a total of 160.00 from holding Kandy Hotels or generate 20.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.31% |
| Values | Daily Returns |
Kandy Hotels vs. Softlogic Life Insurance
Performance |
| Timeline |
| Kandy Hotels |
| Softlogic Life Insurance |
Kandy Hotels and Softlogic Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandy Hotels and Softlogic Life
The main advantage of trading using opposite Kandy Hotels and Softlogic Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandy Hotels position performs unexpectedly, Softlogic Life 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 Softlogic Life will offset losses from the drop in Softlogic Life's long position.| Kandy Hotels vs. Ceylinco Insurance PLC | Kandy Hotels vs. HATTON NATIONAL BANK | Kandy Hotels vs. Softlogic Life Insurance | Kandy Hotels vs. Amana Bank |
| Softlogic Life vs. Renuka Agri Foods | Softlogic Life vs. Ceylon Tobacco | Softlogic Life vs. BROWNS INVESTMENTS PLC | Softlogic Life vs. Lanka Milk Foods |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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