Correlation Between Citrus Leisure and Asian Hotels
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By analyzing existing cross correlation between Citrus Leisure PLC and Asian Hotels and, you can compare the effects of market volatilities on Citrus Leisure 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 Citrus Leisure with a short position of Asian Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citrus Leisure and Asian Hotels.
Diversification Opportunities for Citrus Leisure and Asian Hotels
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citrus and Asian is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Citrus Leisure PLC and Asian Hotels and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asian Hotels and Citrus Leisure 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 Citrus Leisure PLC 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 Citrus Leisure i.e., Citrus Leisure and Asian Hotels go up and down completely randomly.
Pair Corralation between Citrus Leisure and Asian Hotels
Assuming the 90 days trading horizon Citrus Leisure PLC is expected to generate 1.35 times more return on investment than Asian Hotels. However, Citrus Leisure is 1.35 times more volatile than Asian Hotels and. It trades about -0.04 of its potential returns per unit of risk. Asian Hotels and is currently generating about -0.09 per unit of risk. If you would invest 530.00 in Citrus Leisure PLC on September 3, 2024 and sell it today you would lose (90.00) from holding Citrus Leisure PLC or give up 16.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.29% |
| Values | Daily Returns |
Citrus Leisure PLC vs. Asian Hotels and
Performance |
| Timeline |
| Citrus Leisure PLC |
| Asian Hotels |
Citrus Leisure and Asian Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citrus Leisure and Asian Hotels
The main advantage of trading using opposite Citrus Leisure and Asian Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citrus Leisure 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.| Citrus Leisure vs. Lanka Credit and | Citrus Leisure vs. VIDULLANKA PLC | Citrus Leisure vs. Carson Cumberbatch PLC | Citrus Leisure vs. Peoples Insurance PLC |
| Asian Hotels vs. Carson Cumberbatch PLC | Asian Hotels vs. Lanka Milk Foods | Asian Hotels vs. Citrus Leisure PLC | Asian Hotels vs. ACL Plastics PLC |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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