Correlation Between Citrus Leisure and SERENDIB HOTELS
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By analyzing existing cross correlation between Citrus Leisure PLC and SERENDIB HOTELS PLC, you can compare the effects of market volatilities on Citrus Leisure and SERENDIB 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 SERENDIB HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citrus Leisure and SERENDIB HOTELS.
Diversification Opportunities for Citrus Leisure and SERENDIB HOTELS
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citrus and SERENDIB is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Citrus Leisure PLC and SERENDIB HOTELS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SERENDIB HOTELS PLC 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 SERENDIB HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SERENDIB HOTELS PLC has no effect on the direction of Citrus Leisure i.e., Citrus Leisure and SERENDIB HOTELS go up and down completely randomly.
Pair Corralation between Citrus Leisure and SERENDIB HOTELS
Assuming the 90 days trading horizon Citrus Leisure is expected to generate 66.67 times less return on investment than SERENDIB HOTELS. But when comparing it to its historical volatility, Citrus Leisure PLC is 1.48 times less risky than SERENDIB HOTELS. It trades about 0.01 of its potential returns per unit of risk. SERENDIB HOTELS PLC is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 1,030 in SERENDIB HOTELS PLC on September 13, 2024 and sell it today you would earn a total of 220.00 from holding SERENDIB HOTELS PLC or generate 21.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citrus Leisure PLC vs. SERENDIB HOTELS PLC
Performance |
| Timeline |
| Citrus Leisure PLC |
| SERENDIB HOTELS PLC |
Citrus Leisure and SERENDIB HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citrus Leisure and SERENDIB HOTELS
The main advantage of trading using opposite Citrus Leisure and SERENDIB HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citrus Leisure position performs unexpectedly, SERENDIB 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 SERENDIB HOTELS will offset losses from the drop in SERENDIB HOTELS's long position.| Citrus Leisure vs. Hatton National Bank | Citrus Leisure vs. Lion Brewery Ceylon | Citrus Leisure vs. Merchant Bank of | Citrus Leisure vs. Ceylon Hospitals PLC |
| SERENDIB HOTELS vs. Jat Holdings PLC | SERENDIB HOTELS vs. Lanka Credit and | SERENDIB HOTELS vs. VIDULLANKA PLC | SERENDIB HOTELS vs. Carson Cumberbatch 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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