Correlation Between Prime Lands and Eden Hotel
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By analyzing existing cross correlation between Prime Lands Residencies and Eden Hotel Lanka, you can compare the effects of market volatilities on Prime Lands and Eden Hotel 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 Eden Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prime Lands and Eden Hotel.
Diversification Opportunities for Prime Lands and Eden Hotel
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Prime and Eden is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Prime Lands Residencies and Eden Hotel Lanka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eden Hotel Lanka 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 Eden Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eden Hotel Lanka has no effect on the direction of Prime Lands i.e., Prime Lands and Eden Hotel go up and down completely randomly.
Pair Corralation between Prime Lands and Eden Hotel
Assuming the 90 days trading horizon Prime Lands Residencies is expected to generate 1.08 times more return on investment than Eden Hotel. However, Prime Lands is 1.08 times more volatile than Eden Hotel Lanka. It trades about 0.19 of its potential returns per unit of risk. Eden Hotel Lanka is currently generating about 0.15 per unit of risk. If you would invest 910.00 in Prime Lands Residencies on September 1, 2024 and sell it today you would earn a total of 80.00 from holding Prime Lands Residencies or generate 8.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Prime Lands Residencies vs. Eden Hotel Lanka
Performance |
Timeline |
Prime Lands Residencies |
Eden Hotel Lanka |
Prime Lands and Eden Hotel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Prime Lands and Eden Hotel
The main advantage of trading using opposite Prime Lands and Eden Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prime Lands position performs unexpectedly, Eden Hotel 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 Eden Hotel will offset losses from the drop in Eden Hotel'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 |
Eden Hotel vs. Lighthouse Hotel PLC | Eden Hotel vs. Aitken Spence Hotel | Eden Hotel vs. Dolphin Hotels PLC | Eden Hotel vs. Trans Asia Hotels |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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