Correlation Between Palm Garden and SERENDIB HOTELS
Specify exactly 2 symbols:
By analyzing existing cross correlation between Palm Garden Hotels and SERENDIB HOTELS PLC, you can compare the effects of market volatilities on Palm Garden and SERENDIB 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 SERENDIB HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palm Garden and SERENDIB HOTELS.
Diversification Opportunities for Palm Garden and SERENDIB HOTELS
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Palm and SERENDIB is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Palm Garden Hotels and SERENDIB HOTELS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SERENDIB HOTELS PLC 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 SERENDIB HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SERENDIB HOTELS PLC has no effect on the direction of Palm Garden i.e., Palm Garden and SERENDIB HOTELS go up and down completely randomly.
Pair Corralation between Palm Garden and SERENDIB HOTELS
Assuming the 90 days trading horizon Palm Garden is expected to generate 1.52 times less return on investment than SERENDIB HOTELS. But when comparing it to its historical volatility, Palm Garden Hotels is 1.18 times less risky than SERENDIB HOTELS. It trades about 0.27 of its potential returns per unit of risk. SERENDIB HOTELS PLC is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 1,020 in SERENDIB HOTELS PLC on August 31, 2024 and sell it today you would earn a total of 150.00 from holding SERENDIB HOTELS PLC or generate 14.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Palm Garden Hotels vs. SERENDIB HOTELS PLC
Performance |
| Timeline |
| Palm Garden Hotels |
| SERENDIB HOTELS PLC |
Palm Garden and SERENDIB HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Palm Garden and SERENDIB HOTELS
The main advantage of trading using opposite Palm Garden and SERENDIB HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palm Garden position performs unexpectedly, SERENDIB 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 SERENDIB HOTELS will offset losses from the drop in SERENDIB HOTELS's long position.| Palm Garden vs. Pegasus Hotels of | Palm Garden vs. Peoples Insurance PLC | Palm Garden vs. Sigiriya Village Hotels | Palm Garden vs. Lanka Realty Investments |
| SERENDIB HOTELS vs. HNB Finance | SERENDIB HOTELS vs. Prime Lands Residencies | SERENDIB HOTELS vs. Jat Holdings PLC | SERENDIB HOTELS vs. E M L |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |