Correlation Between Palm Garden and Galadari Hotels
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By analyzing existing cross correlation between Palm Garden Hotels and Galadari Hotels Lanka, you can compare the effects of market volatilities on Palm Garden and Galadari 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 Palm Garden with a short position of Galadari Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palm Garden and Galadari Hotels.
Diversification Opportunities for Palm Garden and Galadari Hotels
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Palm and Galadari is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Palm Garden Hotels and Galadari Hotels Lanka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galadari Hotels Lanka 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 Galadari Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galadari Hotels Lanka has no effect on the direction of Palm Garden i.e., Palm Garden and Galadari Hotels go up and down completely randomly.
Pair Corralation between Palm Garden and Galadari Hotels
Assuming the 90 days trading horizon Palm Garden Hotels is expected to generate 1.37 times more return on investment than Galadari Hotels. However, Palm Garden is 1.37 times more volatile than Galadari Hotels Lanka. It trades about 0.03 of its potential returns per unit of risk. Galadari Hotels Lanka is currently generating about 0.03 per unit of risk. If you would invest 5,670 in Palm Garden Hotels on January 27, 2025 and sell it today you would earn a total of 830.00 from holding Palm Garden Hotels or generate 14.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 91.95% |
| Values | Daily Returns |
Palm Garden Hotels vs. Galadari Hotels Lanka
Performance |
| Timeline |
| Palm Garden Hotels |
| Galadari Hotels Lanka |
Palm Garden and Galadari Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Palm Garden and Galadari Hotels
The main advantage of trading using opposite Palm Garden and Galadari Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palm Garden position performs unexpectedly, Galadari 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 Galadari Hotels will offset losses from the drop in Galadari Hotels' long position.| Palm Garden vs. Carson Cumberbatch PLC | Palm Garden vs. Kandy Hotels | Palm Garden vs. Dolphin Hotels PLC | Palm Garden vs. Tal Lanka Hotels |
| Galadari Hotels vs. HDFC Bank of | Galadari Hotels vs. Seylan Bank PLC | Galadari Hotels vs. Pan Asia Banking | Galadari Hotels vs. National Development 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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