Correlation Between Prime Lands and Asian Hotels
Specify exactly 2 symbols:
By analyzing existing cross correlation between Prime Lands Residencies and Asian Hotels and, you can compare the effects of market volatilities on Prime Lands and Asian Hotels 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 Prime Lands with a short position of Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prime Lands and Asian Hotels.
Diversification Opportunities for Prime Lands and Asian Hotels
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Prime and Asian is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Prime Lands Residencies and Asian Hotels and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Hotels and Prime Lands 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 Prime Lands Residencies are associated (or correlated) with Asian Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asian Hotels has no effect on the direction of Prime Lands i.e., Prime Lands and Asian Hotels go up and down completely randomly.
Pair Corralation between Prime Lands and Asian Hotels
Assuming the 90 days trading horizon Prime Lands is expected to generate 1.4 times less return on investment than Asian Hotels. But when comparing it to its historical volatility, Prime Lands Residencies is 1.07 times less risky than Asian Hotels. It trades about 0.05 of its potential returns per unit of risk. Asian Hotels and is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,900 in Asian Hotels and on August 31, 2024 and sell it today you would earn a total of 1,840 from holding Asian Hotels and or generate 47.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.03% |
| Values | Daily Returns |
Prime Lands Residencies vs. Asian Hotels and
Performance |
| Timeline |
| Prime Lands Residencies |
| Asian Hotels |
Prime Lands and Asian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prime Lands and Asian Hotels
The main advantage of trading using opposite Prime Lands and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prime Lands position performs unexpectedly, Asian Hotels 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 Asian Hotels will offset losses from the drop in Asian Hotels' long position.| Prime Lands vs. HNB Finance | Prime Lands vs. Jat Holdings PLC | Prime Lands vs. E M L | Prime Lands vs. Lanka Credit and |
| Asian Hotels vs. HNB Finance | Asian Hotels vs. Prime Lands Residencies | Asian Hotels vs. Jat Holdings PLC | Asian Hotels 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |