Correlation Between Palm Garden and Amana Bank
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By analyzing existing cross correlation between Palm Garden Hotels and Amana Bank, you can compare the effects of market volatilities on Palm Garden and Amana Bank 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 Palm Garden with a short position of Amana Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palm Garden and Amana Bank.
Diversification Opportunities for Palm Garden and Amana Bank
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Palm and Amana is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Palm Garden Hotels and Amana Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amana Bank and Palm Garden 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 Palm Garden Hotels are associated (or correlated) with Amana Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amana Bank has no effect on the direction of Palm Garden i.e., Palm Garden and Amana Bank go up and down completely randomly.
Pair Corralation between Palm Garden and Amana Bank
Assuming the 90 days trading horizon Palm Garden Hotels is expected to generate 3.27 times more return on investment than Amana Bank. However, Palm Garden is 3.27 times more volatile than Amana Bank. It trades about 0.17 of its potential returns per unit of risk. Amana Bank is currently generating about 0.0 per unit of risk. If you would invest 4,230 in Palm Garden Hotels on September 4, 2024 and sell it today you would earn a total of 400.00 from holding Palm Garden Hotels or generate 9.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Palm Garden Hotels vs. Amana Bank
Performance |
| Timeline |
| Palm Garden Hotels |
| Amana Bank |
Palm Garden and Amana Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Palm Garden and Amana Bank
The main advantage of trading using opposite Palm Garden and Amana Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palm Garden position performs unexpectedly, Amana Bank 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 Amana Bank will offset losses from the drop in Amana Bank's long position.| Palm Garden vs. Carson Cumberbatch PLC | Palm Garden vs. Nations Trust Bank | Palm Garden vs. Distilleries Company of |
| Amana Bank vs. HATTON NATIONAL BANK | Amana Bank vs. Commercial Credit and | Amana Bank vs. Palm Garden Hotels | Amana Bank 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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