Correlation Between Pegasus Hotels and Aitken Spence
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By analyzing existing cross correlation between Pegasus Hotels of and Aitken Spence Hotel, you can compare the effects of market volatilities on Pegasus Hotels and Aitken Spence 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 Pegasus Hotels with a short position of Aitken Spence. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pegasus Hotels and Aitken Spence.
Diversification Opportunities for Pegasus Hotels and Aitken Spence
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pegasus and Aitken is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Pegasus Hotels of and Aitken Spence Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aitken Spence Hotel and Pegasus Hotels 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 Pegasus Hotels of are associated (or correlated) with Aitken Spence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aitken Spence Hotel has no effect on the direction of Pegasus Hotels i.e., Pegasus Hotels and Aitken Spence go up and down completely randomly.
Pair Corralation between Pegasus Hotels and Aitken Spence
Assuming the 90 days trading horizon Pegasus Hotels of is expected to generate 2.31 times more return on investment than Aitken Spence. However, Pegasus Hotels is 2.31 times more volatile than Aitken Spence Hotel. It trades about 0.22 of its potential returns per unit of risk. Aitken Spence Hotel is currently generating about 0.2 per unit of risk. If you would invest 3,010 in Pegasus Hotels of on August 30, 2024 and sell it today you would earn a total of 590.00 from holding Pegasus Hotels of or generate 19.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pegasus Hotels of vs. Aitken Spence Hotel
Performance |
| Timeline |
| Pegasus Hotels |
| Aitken Spence Hotel |
Pegasus Hotels and Aitken Spence Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pegasus Hotels and Aitken Spence
The main advantage of trading using opposite Pegasus Hotels and Aitken Spence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pegasus Hotels position performs unexpectedly, Aitken Spence 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 Aitken Spence will offset losses from the drop in Aitken Spence's long position.| Pegasus Hotels vs. EX PACK RUGATED CARTONS | Pegasus Hotels vs. PANASIAN POWER PLC | Pegasus Hotels vs. Distilleries Company of | Pegasus Hotels vs. Palm Garden Hotels |
| Aitken Spence vs. EX PACK RUGATED CARTONS | Aitken Spence vs. PANASIAN POWER PLC | Aitken Spence vs. Distilleries Company of | Aitken Spence vs. Palm Garden Hotels |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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