Correlation Between Kandy Hotels and Carson Cumberbatch
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kandy Hotels and Carson Cumberbatch PLC, you can compare the effects of market volatilities on Kandy Hotels and Carson Cumberbatch 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 Carson Cumberbatch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandy Hotels and Carson Cumberbatch.
Diversification Opportunities for Kandy Hotels and Carson Cumberbatch
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kandy and Carson is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Kandy Hotels and Carson Cumberbatch PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carson Cumberbatch PLC 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 Carson Cumberbatch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carson Cumberbatch PLC has no effect on the direction of Kandy Hotels i.e., Kandy Hotels and Carson Cumberbatch go up and down completely randomly.
Pair Corralation between Kandy Hotels and Carson Cumberbatch
Assuming the 90 days trading horizon Kandy Hotels is expected to generate 1.4 times more return on investment than Carson Cumberbatch. However, Kandy Hotels is 1.4 times more volatile than Carson Cumberbatch PLC. It trades about 0.03 of its potential returns per unit of risk. Carson Cumberbatch PLC is currently generating about 0.03 per unit of risk. If you would invest 750.00 in Kandy Hotels on August 27, 2024 and sell it today you would earn a total of 130.00 from holding Kandy Hotels or generate 17.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 88.91% |
| Values | Daily Returns |
Kandy Hotels vs. Carson Cumberbatch PLC
Performance |
| Timeline |
| Kandy Hotels |
| Carson Cumberbatch PLC |
Kandy Hotels and Carson Cumberbatch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandy Hotels and Carson Cumberbatch
The main advantage of trading using opposite Kandy Hotels and Carson Cumberbatch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandy Hotels position performs unexpectedly, Carson Cumberbatch 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 Carson Cumberbatch will offset losses from the drop in Carson Cumberbatch's long position.| Kandy Hotels vs. COMMERCIAL BANK OF | Kandy Hotels vs. Convenience Foods PLC | Kandy Hotels vs. Sampath Bank PLC | Kandy Hotels vs. HVA Foods PLC |
| Carson Cumberbatch vs. Softlogic Life Insurance | Carson Cumberbatch vs. Singhe Hospitals | Carson Cumberbatch vs. ACL Plastics PLC | Carson Cumberbatch vs. Ceylon Hospitals PLC |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |