Correlation Between Pegasus Hotels and Senkadagala Finance
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By analyzing existing cross correlation between Pegasus Hotels of and Senkadagala Finance PLC, you can compare the effects of market volatilities on Pegasus Hotels and Senkadagala Finance 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 Senkadagala Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pegasus Hotels and Senkadagala Finance.
Diversification Opportunities for Pegasus Hotels and Senkadagala Finance
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pegasus and Senkadagala is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Pegasus Hotels of and Senkadagala Finance PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senkadagala Finance 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 Senkadagala Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senkadagala Finance PLC has no effect on the direction of Pegasus Hotels i.e., Pegasus Hotels and Senkadagala Finance go up and down completely randomly.
Pair Corralation between Pegasus Hotels and Senkadagala Finance
If you would invest 3,200 in Pegasus Hotels of on August 31, 2024 and sell it today you would earn a total of 700.00 from holding Pegasus Hotels of or generate 21.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 55.0% |
| Values | Daily Returns |
Pegasus Hotels of vs. Senkadagala Finance PLC
Performance |
| Timeline |
| Pegasus Hotels |
| Senkadagala Finance PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Pegasus Hotels and Senkadagala Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pegasus Hotels and Senkadagala Finance
The main advantage of trading using opposite Pegasus Hotels and Senkadagala Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pegasus Hotels position performs unexpectedly, Senkadagala Finance 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 Senkadagala Finance will offset losses from the drop in Senkadagala Finance's long position.| Pegasus Hotels vs. Lighthouse Hotel PLC | Pegasus Hotels vs. Hatton National Bank | Pegasus Hotels vs. Amana Bank | Pegasus Hotels vs. Galadari Hotels Lanka |
| Senkadagala Finance vs. HNB Finance | Senkadagala Finance vs. Prime Lands Residencies | Senkadagala Finance vs. Jat Holdings PLC | Senkadagala Finance vs. E M L |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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