Correlation Between Lanka Credit and Aitken Spence
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lanka Credit and and Aitken Spence Hotel, you can compare the effects of market volatilities on Lanka Credit and Aitken Spence 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 Lanka Credit with a short position of Aitken Spence. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lanka Credit and Aitken Spence.
Diversification Opportunities for Lanka Credit and Aitken Spence
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lanka and Aitken is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Lanka Credit and and Aitken Spence Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aitken Spence Hotel and Lanka Credit 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 Lanka Credit and are associated (or correlated) with Aitken Spence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aitken Spence Hotel has no effect on the direction of Lanka Credit i.e., Lanka Credit and Aitken Spence go up and down completely randomly.
Pair Corralation between Lanka Credit and Aitken Spence
Assuming the 90 days trading horizon Lanka Credit is expected to generate 18.53 times less return on investment than Aitken Spence. In addition to that, Lanka Credit is 1.49 times more volatile than Aitken Spence Hotel. It trades about 0.01 of its total potential returns per unit of risk. Aitken Spence Hotel is currently generating about 0.33 per unit of volatility. If you would invest 6,000 in Aitken Spence Hotel on September 1, 2024 and sell it today you would earn a total of 700.00 from holding Aitken Spence Hotel or generate 11.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lanka Credit and vs. Aitken Spence Hotel
Performance |
| Timeline |
| Lanka Credit |
| Aitken Spence Hotel |
Lanka Credit and Aitken Spence Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lanka Credit and Aitken Spence
The main advantage of trading using opposite Lanka Credit and Aitken Spence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lanka Credit position performs unexpectedly, Aitken Spence 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 Aitken Spence will offset losses from the drop in Aitken Spence's long position.| Lanka Credit vs. Merchant Bank of | Lanka Credit vs. Seylan Bank PLC | Lanka Credit vs. Commercial Credit and | Lanka Credit vs. HVA Foods PLC |
| Aitken Spence vs. Prime Lands Residencies | Aitken Spence vs. E M L | Aitken Spence vs. Lanka Credit and | Aitken Spence vs. VIDULLANKA 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |