Correlation Between Kandy Hotels and Senkadagala Finance
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By analyzing existing cross correlation between Kandy Hotels and Senkadagala Finance PLC, you can compare the effects of market volatilities on Kandy Hotels and Senkadagala Finance 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 Senkadagala Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kandy Hotels and Senkadagala Finance.
Diversification Opportunities for Kandy Hotels and Senkadagala Finance
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kandy and Senkadagala is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kandy Hotels and Senkadagala Finance PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senkadagala Finance 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 Senkadagala Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senkadagala Finance PLC has no effect on the direction of Kandy Hotels i.e., Kandy Hotels and Senkadagala Finance go up and down completely randomly.
Pair Corralation between Kandy Hotels and Senkadagala Finance
Assuming the 90 days trading horizon Kandy Hotels is expected to generate 1.64 times less return on investment than Senkadagala Finance. But when comparing it to its historical volatility, Kandy Hotels is 1.66 times less risky than Senkadagala Finance. It trades about 0.03 of its potential returns per unit of risk. Senkadagala Finance PLC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 36,375 in Senkadagala Finance PLC on August 28, 2024 and sell it today you would earn a total of 1,125 from holding Senkadagala Finance PLC or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 37.03% |
| Values | Daily Returns |
Kandy Hotels vs. Senkadagala Finance PLC
Performance |
| Timeline |
| Kandy Hotels |
| Senkadagala Finance PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kandy Hotels and Senkadagala Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kandy Hotels and Senkadagala Finance
The main advantage of trading using opposite Kandy Hotels and Senkadagala Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kandy Hotels position performs unexpectedly, Senkadagala Finance 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 Senkadagala Finance will offset losses from the drop in Senkadagala Finance'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 |
| Senkadagala Finance vs. Tangerine Beach Hotels | Senkadagala Finance vs. Browns Beach Hotels | Senkadagala Finance vs. Pegasus Hotels of | Senkadagala Finance vs. Kandy 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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