Correlation Between Nuwara Eliya and Asian Hotels
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By analyzing existing cross correlation between Nuwara Eliya Hotels and Asian Hotels and, you can compare the effects of market volatilities on Nuwara Eliya and Asian Hotels 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 Nuwara Eliya with a short position of Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuwara Eliya and Asian Hotels.
Diversification Opportunities for Nuwara Eliya and Asian Hotels
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nuwara and Asian is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Nuwara Eliya Hotels and Asian Hotels and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Hotels and Nuwara Eliya 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 Nuwara Eliya Hotels are associated (or correlated) with Asian Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Hotels has no effect on the direction of Nuwara Eliya i.e., Nuwara Eliya and Asian Hotels go up and down completely randomly.
Pair Corralation between Nuwara Eliya and Asian Hotels
Assuming the 90 days trading horizon Nuwara Eliya Hotels is expected to generate 1.69 times more return on investment than Asian Hotels. However, Nuwara Eliya is 1.69 times more volatile than Asian Hotels and. It trades about 0.04 of its potential returns per unit of risk. Asian Hotels and is currently generating about -0.05 per unit of risk. If you would invest 195,550 in Nuwara Eliya Hotels on September 2, 2024 and sell it today you would earn a total of 11,425 from holding Nuwara Eliya Hotels or generate 5.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.68% |
| Values | Daily Returns |
Nuwara Eliya Hotels vs. Asian Hotels and
Performance |
| Timeline |
| Nuwara Eliya Hotels |
| Asian Hotels |
Nuwara Eliya and Asian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuwara Eliya and Asian Hotels
The main advantage of trading using opposite Nuwara Eliya and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuwara Eliya position performs unexpectedly, Asian Hotels 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 Asian Hotels will offset losses from the drop in Asian Hotels' long position.| Nuwara Eliya vs. Prime Lands Residencies | Nuwara Eliya vs. Lanka Credit and | Nuwara Eliya vs. VIDULLANKA PLC | Nuwara Eliya vs. EX PACK RUGATED CARTONS |
| Asian Hotels vs. Peoples Insurance PLC | Asian Hotels vs. Kandy Hotels | Asian Hotels vs. Renuka Agri Foods | Asian Hotels vs. Lanka Milk Foods |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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