Correlation Between Pegasus Hotels and Hotel Sigiriya
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By analyzing existing cross correlation between Pegasus Hotels of and Hotel Sigiriya PLC, you can compare the effects of market volatilities on Pegasus Hotels and Hotel Sigiriya 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 Hotel Sigiriya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pegasus Hotels and Hotel Sigiriya.
Diversification Opportunities for Pegasus Hotels and Hotel Sigiriya
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pegasus and Hotel is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Pegasus Hotels of and Hotel Sigiriya PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hotel Sigiriya 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 Hotel Sigiriya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hotel Sigiriya PLC has no effect on the direction of Pegasus Hotels i.e., Pegasus Hotels and Hotel Sigiriya go up and down completely randomly.
Pair Corralation between Pegasus Hotels and Hotel Sigiriya
Assuming the 90 days trading horizon Pegasus Hotels of is expected to generate 1.57 times more return on investment than Hotel Sigiriya. However, Pegasus Hotels is 1.57 times more volatile than Hotel Sigiriya PLC. It trades about 0.1 of its potential returns per unit of risk. Hotel Sigiriya PLC is currently generating about 0.04 per unit of risk. If you would invest 2,360 in Pegasus Hotels of on August 27, 2024 and sell it today you would earn a total of 1,470 from holding Pegasus Hotels of or generate 62.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.13% |
| Values | Daily Returns |
Pegasus Hotels of vs. Hotel Sigiriya PLC
Performance |
| Timeline |
| Pegasus Hotels |
| Hotel Sigiriya PLC |
Pegasus Hotels and Hotel Sigiriya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pegasus Hotels and Hotel Sigiriya
The main advantage of trading using opposite Pegasus Hotels and Hotel Sigiriya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pegasus Hotels position performs unexpectedly, Hotel Sigiriya 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 Hotel Sigiriya will offset losses from the drop in Hotel Sigiriya's long position.| Pegasus Hotels vs. Asiri Surgical Hospital | Pegasus Hotels vs. Commercial Credit and | Pegasus Hotels vs. National Development Bank | Pegasus Hotels vs. DFCC Bank PLC |
| Hotel Sigiriya vs. Sigiriya Village Hotels | Hotel Sigiriya vs. Browns Beach Hotels | Hotel Sigiriya vs. Ceylinco Insurance PLC | Hotel Sigiriya vs. Trans Asia 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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