Correlation Between Kandy Hotels and EX PACK
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By analyzing existing cross correlation between Kandy Hotels and EX PACK RUGATED CARTONS, you can compare the effects of market volatilities on Kandy Hotels and EX PACK 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 EX PACK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandy Hotels and EX PACK.
Diversification Opportunities for Kandy Hotels and EX PACK
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kandy and PACKN0000 is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kandy Hotels and EX PACK RUGATED CARTONS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EX PACK RUGATED 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 EX PACK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EX PACK RUGATED has no effect on the direction of Kandy Hotels i.e., Kandy Hotels and EX PACK go up and down completely randomly.
Pair Corralation between Kandy Hotels and EX PACK
Assuming the 90 days trading horizon Kandy Hotels is expected to under-perform the EX PACK. In addition to that, Kandy Hotels is 1.15 times more volatile than EX PACK RUGATED CARTONS. It trades about -0.08 of its total potential returns per unit of risk. EX PACK RUGATED CARTONS is currently generating about -0.07 per unit of volatility. If you would invest 1,520 in EX PACK RUGATED CARTONS on November 28, 2024 and sell it today you would lose (40.00) from holding EX PACK RUGATED CARTONS or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kandy Hotels vs. EX PACK RUGATED CARTONS
Performance |
| Timeline |
| Kandy Hotels |
| EX PACK RUGATED |
Kandy Hotels and EX PACK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandy Hotels and EX PACK
The main advantage of trading using opposite Kandy Hotels and EX PACK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandy Hotels position performs unexpectedly, EX PACK 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 EX PACK will offset losses from the drop in EX PACK's long position.| Kandy Hotels vs. RENUKA FOODS PLC | Kandy Hotels vs. Lighthouse Hotel PLC | Kandy Hotels vs. Renuka City Hotel | Kandy Hotels vs. Tangerine Beach Hotels |
| EX PACK vs. Lanka Realty Investments | EX PACK vs. Sigiriya Village Hotels | EX PACK vs. Renuka Agri Foods | EX PACK vs. Ceylon Hotels |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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