Correlation Between John Keells and ACL Plastics
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By analyzing existing cross correlation between John Keells Hotels and ACL Plastics PLC, you can compare the effects of market volatilities on John Keells and ACL Plastics 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 John Keells with a short position of ACL Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Keells and ACL Plastics.
Diversification Opportunities for John Keells and ACL Plastics
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between John and ACL is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding John Keells Hotels and ACL Plastics PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACL Plastics PLC and John Keells 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 John Keells Hotels are associated (or correlated) with ACL Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACL Plastics PLC has no effect on the direction of John Keells i.e., John Keells and ACL Plastics go up and down completely randomly.
Pair Corralation between John Keells and ACL Plastics
Assuming the 90 days trading horizon John Keells Hotels is expected to under-perform the ACL Plastics. In addition to that, John Keells is 1.1 times more volatile than ACL Plastics PLC. It trades about -0.01 of its total potential returns per unit of risk. ACL Plastics PLC is currently generating about 0.07 per unit of volatility. If you would invest 41,150 in ACL Plastics PLC on August 30, 2024 and sell it today you would earn a total of 4,900 from holding ACL Plastics PLC or generate 11.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
John Keells Hotels vs. ACL Plastics PLC
Performance |
| Timeline |
| John Keells Hotels |
| ACL Plastics PLC |
John Keells and ACL Plastics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Keells and ACL Plastics
The main advantage of trading using opposite John Keells and ACL Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Keells position performs unexpectedly, ACL Plastics 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 ACL Plastics will offset losses from the drop in ACL Plastics' long position.| John Keells vs. EX PACK RUGATED CARTONS | John Keells vs. PANASIAN POWER PLC | John Keells vs. Distilleries Company of | John Keells vs. Palm Garden Hotels |
| ACL Plastics vs. EX PACK RUGATED CARTONS | ACL Plastics vs. PANASIAN POWER PLC | ACL Plastics vs. Distilleries Company of | ACL Plastics vs. Palm Garden 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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