Correlation Between Lanka Credit and Prime Lands
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By analyzing existing cross correlation between Lanka Credit and and Prime Lands Residencies, you can compare the effects of market volatilities on Lanka Credit and Prime Lands 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 Prime Lands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lanka Credit and Prime Lands.
Diversification Opportunities for Lanka Credit and Prime Lands
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lanka and Prime is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Lanka Credit and and Prime Lands Residencies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prime Lands Residencies 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 Prime Lands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prime Lands Residencies has no effect on the direction of Lanka Credit i.e., Lanka Credit and Prime Lands go up and down completely randomly.
Pair Corralation between Lanka Credit and Prime Lands
Assuming the 90 days trading horizon Lanka Credit and is expected to under-perform the Prime Lands. In addition to that, Lanka Credit is 1.02 times more volatile than Prime Lands Residencies. It trades about -0.25 of its total potential returns per unit of risk. Prime Lands Residencies is currently generating about 0.23 per unit of volatility. If you would invest 860.00 in Prime Lands Residencies on August 28, 2024 and sell it today you would earn a total of 100.00 from holding Prime Lands Residencies or generate 11.63% 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. Prime Lands Residencies
Performance |
| Timeline |
| Lanka Credit |
| Prime Lands Residencies |
Lanka Credit and Prime Lands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lanka Credit and Prime Lands
The main advantage of trading using opposite Lanka Credit and Prime Lands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lanka Credit position performs unexpectedly, Prime Lands 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 Prime Lands will offset losses from the drop in Prime Lands' long position.| Lanka Credit vs. Sigiriya Village Hotels | Lanka Credit vs. Union Chemicals Lanka | Lanka Credit vs. Sri Lanka Telecom | Lanka Credit vs. Distilleries Company of |
| Prime Lands vs. Mahaweli Reach Hotel | Prime Lands vs. Palm Garden Hotels | Prime Lands vs. Tal Lanka Hotels | Prime Lands vs. Tangerine Beach 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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