Correlation Between Lighthouse Hotel and Aitken Spence
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lighthouse Hotel PLC and Aitken Spence Hotel, you can compare the effects of market volatilities on Lighthouse Hotel 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 Lighthouse Hotel with a short position of Aitken Spence. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lighthouse Hotel and Aitken Spence.
Diversification Opportunities for Lighthouse Hotel and Aitken Spence
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lighthouse and Aitken is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Lighthouse Hotel PLC 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 Lighthouse Hotel 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 Lighthouse Hotel PLC 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 Lighthouse Hotel i.e., Lighthouse Hotel and Aitken Spence go up and down completely randomly.
Pair Corralation between Lighthouse Hotel and Aitken Spence
Assuming the 90 days trading horizon Lighthouse Hotel PLC is expected to generate 1.7 times more return on investment than Aitken Spence. However, Lighthouse Hotel is 1.7 times more volatile than Aitken Spence Hotel. It trades about 0.2 of its potential returns per unit of risk. Aitken Spence Hotel is currently generating about 0.34 per unit of risk. If you would invest 4,870 in Lighthouse Hotel PLC on August 27, 2024 and sell it today you would earn a total of 430.00 from holding Lighthouse Hotel PLC or generate 8.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Lighthouse Hotel PLC vs. Aitken Spence Hotel
Performance |
| Timeline |
| Lighthouse Hotel PLC |
| Aitken Spence Hotel |
Lighthouse Hotel and Aitken Spence Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lighthouse Hotel and Aitken Spence
The main advantage of trading using opposite Lighthouse Hotel and Aitken Spence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lighthouse Hotel 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.| Lighthouse Hotel vs. Ceylon Guardian Investment | Lighthouse Hotel vs. Sri Lanka Telecom | Lighthouse Hotel vs. Ceylon Hotels | Lighthouse Hotel vs. Palm Garden Hotels |
| Aitken Spence vs. Browns Beach Hotels | Aitken Spence vs. Trans Asia Hotels | Aitken Spence vs. Kandy Hotels | Aitken Spence vs. Lanka Realty Investments |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |