Correlation Between Prime Lands and John Keells
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By analyzing existing cross correlation between Prime Lands Residencies and John Keells Hotels, you can compare the effects of market volatilities on Prime Lands and John Keells 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 John Keells. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prime Lands and John Keells.
Diversification Opportunities for Prime Lands and John Keells
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Prime and John is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Prime Lands Residencies and John Keells Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Keells 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 John Keells. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Keells Hotels has no effect on the direction of Prime Lands i.e., Prime Lands and John Keells go up and down completely randomly.
Pair Corralation between Prime Lands and John Keells
Assuming the 90 days trading horizon Prime Lands Residencies is expected to generate 1.34 times more return on investment than John Keells. However, Prime Lands is 1.34 times more volatile than John Keells Hotels. It trades about 0.19 of its potential returns per unit of risk. John Keells Hotels is currently generating about 0.2 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prime Lands Residencies vs. John Keells Hotels
Performance |
| Timeline |
| Prime Lands Residencies |
| John Keells Hotels |
Prime Lands and John Keells Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prime Lands and John Keells
The main advantage of trading using opposite Prime Lands and John Keells positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prime Lands position performs unexpectedly, John Keells 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 John Keells will offset losses from the drop in John Keells' 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 |
| John Keells vs. Prime Lands Residencies | John Keells vs. Jat Holdings PLC | John Keells vs. E M L | John Keells 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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