Correlation Between Renuka Agri and Lighthouse Hotel
Specify exactly 2 symbols:
By analyzing existing cross correlation between Renuka Agri Foods and Lighthouse Hotel PLC, you can compare the effects of market volatilities on Renuka Agri and Lighthouse 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 Renuka Agri with a short position of Lighthouse Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Renuka Agri and Lighthouse Hotel.
Diversification Opportunities for Renuka Agri and Lighthouse Hotel
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Renuka and Lighthouse is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Renuka Agri Foods and Lighthouse Hotel PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lighthouse Hotel PLC and Renuka Agri 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 Renuka Agri Foods are associated (or correlated) with Lighthouse Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lighthouse Hotel PLC has no effect on the direction of Renuka Agri i.e., Renuka Agri and Lighthouse Hotel go up and down completely randomly.
Pair Corralation between Renuka Agri and Lighthouse Hotel
Assuming the 90 days trading horizon Renuka Agri Foods is expected to under-perform the Lighthouse Hotel. But the stock apears to be less risky and, when comparing its historical volatility, Renuka Agri Foods is 1.34 times less risky than Lighthouse Hotel. The stock trades about -0.06 of its potential returns per unit of risk. The Lighthouse Hotel PLC is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 4,790 in Lighthouse Hotel PLC on August 31, 2024 and sell it today you would earn a total of 710.00 from holding Lighthouse Hotel PLC or generate 14.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Renuka Agri Foods vs. Lighthouse Hotel PLC
Performance |
| Timeline |
| Renuka Agri Foods |
| Lighthouse Hotel PLC |
Renuka Agri and Lighthouse Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Renuka Agri and Lighthouse Hotel
The main advantage of trading using opposite Renuka Agri and Lighthouse Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Renuka Agri position performs unexpectedly, Lighthouse 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 Lighthouse Hotel will offset losses from the drop in Lighthouse Hotel's long position.| Renuka Agri vs. HNB Finance | Renuka Agri vs. Prime Lands Residencies | Renuka Agri vs. Jat Holdings PLC | Renuka Agri vs. E M L |
| Lighthouse Hotel vs. Lion Brewery Ceylon | Lighthouse Hotel vs. Amana Bank | Lighthouse Hotel vs. Lanka Milk Foods | Lighthouse Hotel vs. Renuka Agri Foods |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |