Correlation Between Lankem Ceylon and Jat Holdings
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lankem Ceylon PLC and Jat Holdings PLC, you can compare the effects of market volatilities on Lankem Ceylon 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 Lankem Ceylon with a short position of Jat Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lankem Ceylon and Jat Holdings.
Diversification Opportunities for Lankem Ceylon and Jat Holdings
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lankem and Jat is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Lankem Ceylon PLC 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 Lankem Ceylon 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 Lankem Ceylon PLC 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 Lankem Ceylon i.e., Lankem Ceylon and Jat Holdings go up and down completely randomly.
Pair Corralation between Lankem Ceylon and Jat Holdings
Assuming the 90 days trading horizon Lankem Ceylon PLC is expected to under-perform the Jat Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Lankem Ceylon PLC is 1.37 times less risky than Jat Holdings. The stock trades about -0.1 of its potential returns per unit of risk. The Jat Holdings PLC is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,770 in Jat Holdings PLC on August 24, 2024 and sell it today you would earn a total of 180.00 from holding Jat Holdings PLC or generate 10.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lankem Ceylon PLC vs. Jat Holdings PLC
Performance |
| Timeline |
| Lankem Ceylon PLC |
| Jat Holdings PLC |
Lankem Ceylon and Jat Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lankem Ceylon and Jat Holdings
The main advantage of trading using opposite Lankem Ceylon and Jat Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lankem Ceylon 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.| Lankem Ceylon vs. Serendib Hotels PLC | Lankem Ceylon vs. Pegasus Hotels of | Lankem Ceylon vs. Palm Garden Hotels | Lankem Ceylon vs. Asian Hotels and |
| Jat Holdings vs. Lanka Credit and | Jat Holdings vs. Carson Cumberbatch PLC | Jat Holdings vs. Mahaweli Reach Hotel | Jat Holdings vs. Lankem Ceylon 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |