Correlation Between Lighthouse Hotel and Nuwara Eliya
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By analyzing existing cross correlation between Lighthouse Hotel PLC and Nuwara Eliya Hotels, you can compare the effects of market volatilities on Lighthouse Hotel and Nuwara Eliya 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 Nuwara Eliya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lighthouse Hotel and Nuwara Eliya.
Diversification Opportunities for Lighthouse Hotel and Nuwara Eliya
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lighthouse and Nuwara is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Lighthouse Hotel PLC and Nuwara Eliya Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuwara Eliya Hotels 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 Nuwara Eliya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuwara Eliya Hotels has no effect on the direction of Lighthouse Hotel i.e., Lighthouse Hotel and Nuwara Eliya go up and down completely randomly.
Pair Corralation between Lighthouse Hotel and Nuwara Eliya
Assuming the 90 days trading horizon Lighthouse Hotel PLC is expected to generate 1.19 times more return on investment than Nuwara Eliya. However, Lighthouse Hotel is 1.19 times more volatile than Nuwara Eliya Hotels. It trades about 0.17 of its potential returns per unit of risk. Nuwara Eliya Hotels is currently generating about -0.15 per unit of risk. If you would invest 5,910 in Lighthouse Hotel PLC on January 28, 2025 and sell it today you would earn a total of 370.00 from holding Lighthouse Hotel PLC or generate 6.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.67% |
| Values | Daily Returns |
Lighthouse Hotel PLC vs. Nuwara Eliya Hotels
Performance |
| Timeline |
| Lighthouse Hotel PLC |
| Nuwara Eliya Hotels |
Lighthouse Hotel and Nuwara Eliya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lighthouse Hotel and Nuwara Eliya
The main advantage of trading using opposite Lighthouse Hotel and Nuwara Eliya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lighthouse Hotel position performs unexpectedly, Nuwara Eliya 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 Nuwara Eliya will offset losses from the drop in Nuwara Eliya's long position.| Lighthouse Hotel vs. HNB Finance | Lighthouse Hotel vs. Prime Lands Residencies | Lighthouse Hotel vs. Jat Holdings PLC | Lighthouse Hotel vs. E M L |
| Nuwara Eliya vs. HATTON NATIONAL BANK | Nuwara Eliya vs. Convenience Foods PLC | Nuwara Eliya vs. Pan Asia Banking | Nuwara Eliya vs. Hatton National Bank |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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