Correlation Between EX PACK and John Keells
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By analyzing existing cross correlation between EX PACK RUGATED CARTONS and John Keells Hotels, you can compare the effects of market volatilities on EX PACK and John Keells 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 EX PACK with a short position of John Keells. Check out your portfolio center. Please also check ongoing floating volatility patterns of EX PACK and John Keells.
Diversification Opportunities for EX PACK and John Keells
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between PACKN0000 and John is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding EX PACK RUGATED CARTONS and John Keells Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Keells Hotels and EX PACK 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 EX PACK RUGATED CARTONS are associated (or correlated) with John Keells. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Keells Hotels has no effect on the direction of EX PACK i.e., EX PACK and John Keells go up and down completely randomly.
Pair Corralation between EX PACK and John Keells
Assuming the 90 days trading horizon EX PACK RUGATED CARTONS is expected to generate 0.84 times more return on investment than John Keells. However, EX PACK RUGATED CARTONS is 1.19 times less risky than John Keells. It trades about -0.07 of its potential returns per unit of risk. John Keells Hotels is currently generating about -0.44 per unit of risk. If you would invest 1,520 in EX PACK RUGATED CARTONS on November 28, 2024 and sell it today you would lose (40.00) from holding EX PACK RUGATED CARTONS or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EX PACK RUGATED CARTONS vs. John Keells Hotels
Performance |
| Timeline |
| EX PACK RUGATED |
| John Keells Hotels |
EX PACK and John Keells Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EX PACK and John Keells
The main advantage of trading using opposite EX PACK and John Keells positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EX PACK position performs unexpectedly, John Keells 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 John Keells will offset losses from the drop in John Keells' long position.| EX PACK vs. Lanka Realty Investments | EX PACK vs. Sigiriya Village Hotels | EX PACK vs. Renuka Agri Foods | EX PACK vs. Ceylon Hotels |
| John Keells vs. Amaya Leisure PLC | John Keells vs. Arpico Insurance | John Keells vs. Hotel Sigiriya PLC | John Keells vs. Peoples Insurance 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.
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