Correlation Between PANASIAN POWER and Lighthouse Hotel
Specify exactly 2 symbols:
By analyzing existing cross correlation between PANASIAN POWER PLC and Lighthouse Hotel PLC, you can compare the effects of market volatilities on PANASIAN POWER and Lighthouse Hotel 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 PANASIAN POWER with a short position of Lighthouse Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of PANASIAN POWER and Lighthouse Hotel.
Diversification Opportunities for PANASIAN POWER and Lighthouse Hotel
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PANASIAN and Lighthouse is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding PANASIAN POWER PLC and Lighthouse Hotel PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lighthouse Hotel PLC and PANASIAN POWER 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 PANASIAN POWER PLC are associated (or correlated) with Lighthouse Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lighthouse Hotel PLC has no effect on the direction of PANASIAN POWER i.e., PANASIAN POWER and Lighthouse Hotel go up and down completely randomly.
Pair Corralation between PANASIAN POWER and Lighthouse Hotel
Assuming the 90 days trading horizon PANASIAN POWER PLC is expected to generate 1.44 times more return on investment than Lighthouse Hotel. However, PANASIAN POWER is 1.44 times more volatile than Lighthouse Hotel PLC. It trades about -0.17 of its potential returns per unit of risk. Lighthouse Hotel PLC is currently generating about -0.36 per unit of risk. If you would invest 850.00 in PANASIAN POWER PLC on November 28, 2024 and sell it today you would lose (80.00) from holding PANASIAN POWER PLC or give up 9.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
PANASIAN POWER PLC vs. Lighthouse Hotel PLC
Performance |
| Timeline |
| PANASIAN POWER PLC |
| Lighthouse Hotel PLC |
PANASIAN POWER and Lighthouse Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PANASIAN POWER and Lighthouse Hotel
The main advantage of trading using opposite PANASIAN POWER and Lighthouse Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PANASIAN POWER position performs unexpectedly, Lighthouse Hotel 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 Lighthouse Hotel will offset losses from the drop in Lighthouse Hotel's long position.| PANASIAN POWER vs. Lion Brewery Ceylon | PANASIAN POWER vs. Union Chemicals Lanka | PANASIAN POWER vs. Renuka Agri Foods | PANASIAN POWER vs. HVA Foods PLC |
| Lighthouse Hotel vs. Browns Beach Hotels | Lighthouse Hotel vs. Keells Food Products | Lighthouse Hotel vs. Tal Lanka Hotels | Lighthouse Hotel vs. RENUKA FOODS 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |