Correlation Between John Keells and Jat Holdings
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By analyzing existing cross correlation between John Keells Hotels and Jat Holdings PLC, you can compare the effects of market volatilities on John Keells and Jat Holdings 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 Jat Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Keells and Jat Holdings.
Diversification Opportunities for John Keells and Jat Holdings
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between John and Jat is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding John Keells Hotels and Jat Holdings PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jat Holdings 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 Jat Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jat Holdings PLC has no effect on the direction of John Keells i.e., John Keells and Jat Holdings go up and down completely randomly.
Pair Corralation between John Keells and Jat Holdings
Assuming the 90 days trading horizon John Keells is expected to generate 2.3 times less return on investment than Jat Holdings. But when comparing it to its historical volatility, John Keells Hotels is 1.27 times less risky than Jat Holdings. It trades about 0.02 of its potential returns per unit of risk. Jat Holdings PLC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,520 in Jat Holdings PLC on September 1, 2024 and sell it today you would earn a total of 440.00 from holding Jat Holdings PLC or generate 28.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
John Keells Hotels vs. Jat Holdings PLC
Performance |
| Timeline |
| John Keells Hotels |
| Jat Holdings PLC |
John Keells and Jat Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Keells and Jat Holdings
The main advantage of trading using opposite John Keells and Jat Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Keells position performs unexpectedly, Jat Holdings 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 Jat Holdings will offset losses from the drop in Jat Holdings' long position.| John Keells vs. HNB Finance | John Keells vs. Prime Lands Residencies | John Keells vs. Jat Holdings PLC | John Keells vs. E M L |
| Jat Holdings vs. HNB Finance | Jat Holdings vs. Prime Lands Residencies | Jat Holdings vs. E M L | Jat Holdings vs. Lanka Credit and |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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