Correlation Between Pegasus Hotels and Sanasa Development
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By analyzing existing cross correlation between Pegasus Hotels of and Sanasa Development Bank, you can compare the effects of market volatilities on Pegasus Hotels and Sanasa Development 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 Sanasa Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pegasus Hotels and Sanasa Development.
Diversification Opportunities for Pegasus Hotels and Sanasa Development
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pegasus and Sanasa is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Pegasus Hotels of and Sanasa Development Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanasa Development Bank 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 Sanasa Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanasa Development Bank has no effect on the direction of Pegasus Hotels i.e., Pegasus Hotels and Sanasa Development go up and down completely randomly.
Pair Corralation between Pegasus Hotels and Sanasa Development
Assuming the 90 days trading horizon Pegasus Hotels of is expected to generate 3.31 times more return on investment than Sanasa Development. However, Pegasus Hotels is 3.31 times more volatile than Sanasa Development Bank. It trades about 0.15 of its potential returns per unit of risk. Sanasa Development Bank is currently generating about -0.06 per unit of risk. If you would invest 3,230 in Pegasus Hotels of on September 1, 2024 and sell it today you would earn a total of 370.00 from holding Pegasus Hotels of or generate 11.46% 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. Sanasa Development Bank
Performance |
| Timeline |
| Pegasus Hotels |
| Sanasa Development Bank |
Pegasus Hotels and Sanasa Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pegasus Hotels and Sanasa Development
The main advantage of trading using opposite Pegasus Hotels and Sanasa Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pegasus Hotels position performs unexpectedly, Sanasa Development 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 Sanasa Development will offset losses from the drop in Sanasa Development's long position.| Pegasus Hotels vs. Ceylon Hotels | Pegasus Hotels vs. Ceylon Tobacco | Pegasus Hotels vs. Citrus Leisure PLC | Pegasus Hotels vs. Galadari Hotels Lanka |
| Sanasa Development vs. HVA Foods PLC | Sanasa Development vs. Ceylon Hotels | Sanasa Development vs. Eden Hotel Lanka | Sanasa Development vs. Pegasus Hotels of |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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