Correlation Between Prime Lands and Aitken Spence
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By analyzing existing cross correlation between Prime Lands Residencies and Aitken Spence Hotel, you can compare the effects of market volatilities on Prime Lands and Aitken Spence 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 Aitken Spence. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prime Lands and Aitken Spence.
Diversification Opportunities for Prime Lands and Aitken Spence
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Prime and Aitken is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Prime Lands Residencies and Aitken Spence Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aitken Spence Hotel 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 Aitken Spence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aitken Spence Hotel has no effect on the direction of Prime Lands i.e., Prime Lands and Aitken Spence go up and down completely randomly.
Pair Corralation between Prime Lands and Aitken Spence
Assuming the 90 days trading horizon Prime Lands is expected to generate 1.26 times less return on investment than Aitken Spence. In addition to that, Prime Lands is 1.4 times more volatile than Aitken Spence Hotel. It trades about 0.19 of its total potential returns per unit of risk. Aitken Spence Hotel is currently generating about 0.33 per unit of volatility. If you would invest 6,000 in Aitken Spence Hotel on September 1, 2024 and sell it today you would earn a total of 700.00 from holding Aitken Spence Hotel or generate 11.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prime Lands Residencies vs. Aitken Spence Hotel
Performance |
| Timeline |
| Prime Lands Residencies |
| Aitken Spence Hotel |
Prime Lands and Aitken Spence Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prime Lands and Aitken Spence
The main advantage of trading using opposite Prime Lands and Aitken Spence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prime Lands position performs unexpectedly, Aitken Spence 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 Aitken Spence will offset losses from the drop in Aitken Spence's long position.| Prime Lands vs. Pegasus Hotels of | Prime Lands vs. CEYLINCO INSURANCE PLC | Prime Lands vs. Tal Lanka Hotels | Prime Lands vs. Lanka Realty Investments |
| Aitken Spence vs. Prime Lands Residencies | Aitken Spence vs. Jat Holdings PLC | Aitken Spence vs. E M L | Aitken Spence vs. Lanka Credit and |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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