Correlation Between Kandy Hotels and Colombo Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kandy Hotels and Colombo Investment Trust, you can compare the effects of market volatilities on Kandy Hotels and Colombo Investment 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 Colombo Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandy Hotels and Colombo Investment.
Diversification Opportunities for Kandy Hotels and Colombo Investment
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kandy and Colombo is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kandy Hotels and Colombo Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colombo Investment Trust 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 Colombo Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Colombo Investment Trust has no effect on the direction of Kandy Hotels i.e., Kandy Hotels and Colombo Investment go up and down completely randomly.
Pair Corralation between Kandy Hotels and Colombo Investment
Assuming the 90 days trading horizon Kandy Hotels is expected to generate 0.91 times more return on investment than Colombo Investment. However, Kandy Hotels is 1.1 times less risky than Colombo Investment. It trades about 0.01 of its potential returns per unit of risk. Colombo Investment Trust is currently generating about -0.05 per unit of risk. If you would invest 1,310 in Kandy Hotels on October 24, 2024 and sell it today you would earn a total of 0.00 from holding Kandy Hotels or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 83.33% |
| Values | Daily Returns |
Kandy Hotels vs. Colombo Investment Trust
Performance |
| Timeline |
| Kandy Hotels |
| Colombo Investment Trust |
Kandy Hotels and Colombo Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandy Hotels and Colombo Investment
The main advantage of trading using opposite Kandy Hotels and Colombo Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandy Hotels position performs unexpectedly, Colombo Investment 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 Colombo Investment will offset losses from the drop in Colombo Investment's long position.| Kandy Hotels vs. Aitken Spence Hotel | Kandy Hotels vs. Browns Beach Hotels | Kandy Hotels vs. Dolphin Hotels PLC | Kandy Hotels vs. Ceylon Hospitals PLC |
| Colombo Investment vs. Mahaweli Reach Hotel | Colombo Investment vs. Singhe Hospitals | Colombo Investment vs. Hotel Sigiriya PLC | Colombo Investment 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |