Correlation Between Pegasus Hotels and Central Industries
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By analyzing existing cross correlation between Pegasus Hotels of and Central Industries PLC, you can compare the effects of market volatilities on Pegasus Hotels and Central Industries 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 Central Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pegasus Hotels and Central Industries.
Diversification Opportunities for Pegasus Hotels and Central Industries
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pegasus and Central is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Pegasus Hotels of and Central Industries PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Industries PLC 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 Central Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Industries PLC has no effect on the direction of Pegasus Hotels i.e., Pegasus Hotels and Central Industries go up and down completely randomly.
Pair Corralation between Pegasus Hotels and Central Industries
Assuming the 90 days trading horizon Pegasus Hotels of is expected to generate 2.49 times more return on investment than Central Industries. However, Pegasus Hotels is 2.49 times more volatile than Central Industries PLC. It trades about 0.14 of its potential returns per unit of risk. Central Industries PLC is currently generating about 0.22 per unit of risk. If you would invest 3,360 in Pegasus Hotels of on September 14, 2024 and sell it today you would earn a total of 410.00 from holding Pegasus Hotels of or generate 12.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pegasus Hotels of vs. Central Industries PLC
Performance |
| Timeline |
| Pegasus Hotels |
| Central Industries PLC |
Pegasus Hotels and Central Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pegasus Hotels and Central Industries
The main advantage of trading using opposite Pegasus Hotels and Central Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pegasus Hotels position performs unexpectedly, Central Industries 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 Central Industries will offset losses from the drop in Central Industries' long position.| Pegasus Hotels vs. Renuka Agri Foods | Pegasus Hotels vs. Ceylon Cold Stores | Pegasus Hotels vs. Palm Garden Hotels | Pegasus Hotels vs. Galadari Hotels Lanka |
| Central Industries vs. Pegasus Hotels of | Central Industries vs. Sigiriya Village Hotels | Central Industries vs. Lighthouse Hotel PLC | Central Industries vs. BROWNS INVESTMENTS 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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