Correlation Between Pegasus Hotels and Tangerine Beach
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By analyzing existing cross correlation between Pegasus Hotels of and Tangerine Beach Hotels, you can compare the effects of market volatilities on Pegasus Hotels and Tangerine Beach 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 Tangerine Beach. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pegasus Hotels and Tangerine Beach.
Diversification Opportunities for Pegasus Hotels and Tangerine Beach
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pegasus and Tangerine is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Pegasus Hotels of and Tangerine Beach Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tangerine Beach Hotels 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 Tangerine Beach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tangerine Beach Hotels has no effect on the direction of Pegasus Hotels i.e., Pegasus Hotels and Tangerine Beach go up and down completely randomly.
Pair Corralation between Pegasus Hotels and Tangerine Beach
Assuming the 90 days trading horizon Pegasus Hotels of is expected to generate 2.13 times more return on investment than Tangerine Beach. However, Pegasus Hotels is 2.13 times more volatile than Tangerine Beach Hotels. It trades about 0.16 of its potential returns per unit of risk. Tangerine Beach Hotels is currently generating about 0.24 per unit of risk. If you would invest 3,200 in Pegasus Hotels of on August 31, 2024 and sell it today you would earn a total of 400.00 from holding Pegasus Hotels of or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Pegasus Hotels of vs. Tangerine Beach Hotels
Performance |
| Timeline |
| Pegasus Hotels |
| Tangerine Beach Hotels |
Pegasus Hotels and Tangerine Beach Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pegasus Hotels and Tangerine Beach
The main advantage of trading using opposite Pegasus Hotels and Tangerine Beach positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pegasus Hotels position performs unexpectedly, Tangerine Beach 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 Tangerine Beach will offset losses from the drop in Tangerine Beach'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 |
| Tangerine Beach vs. BROWNS INVESTMENTS PLC | Tangerine Beach vs. RENUKA FOODS PLC | Tangerine Beach vs. Convenience Foods PLC | Tangerine Beach vs. Distilleries Company 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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