Correlation Between Palm Garden and Sri Lanka
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By analyzing existing cross correlation between Palm Garden Hotels and Sri Lanka Telecom, you can compare the effects of market volatilities on Palm Garden and Sri Lanka 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 Sri Lanka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palm Garden and Sri Lanka.
Diversification Opportunities for Palm Garden and Sri Lanka
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Palm and Sri is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Palm Garden Hotels and Sri Lanka Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sri Lanka Telecom 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 Sri Lanka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sri Lanka Telecom has no effect on the direction of Palm Garden i.e., Palm Garden and Sri Lanka go up and down completely randomly.
Pair Corralation between Palm Garden and Sri Lanka
Assuming the 90 days trading horizon Palm Garden Hotels is expected to generate 2.11 times more return on investment than Sri Lanka. However, Palm Garden is 2.11 times more volatile than Sri Lanka Telecom. It trades about 0.27 of its potential returns per unit of risk. Sri Lanka Telecom is currently generating about -0.07 per unit of risk. If you would invest 4,230 in Palm Garden Hotels on August 31, 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 | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Palm Garden Hotels vs. Sri Lanka Telecom
Performance |
| Timeline |
| Palm Garden Hotels |
| Sri Lanka Telecom |
Palm Garden and Sri Lanka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Palm Garden and Sri Lanka
The main advantage of trading using opposite Palm Garden and Sri Lanka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palm Garden position performs unexpectedly, Sri Lanka 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 Sri Lanka will offset losses from the drop in Sri Lanka'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 |
| Sri Lanka vs. HNB Finance | Sri Lanka vs. Prime Lands Residencies | Sri Lanka vs. Jat Holdings PLC | Sri Lanka 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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