Correlation Between Citrus Leisure and Trans Asia
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By analyzing existing cross correlation between Citrus Leisure PLC and Trans Asia Hotels, you can compare the effects of market volatilities on Citrus Leisure and Trans Asia 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 Trans Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citrus Leisure and Trans Asia.
Diversification Opportunities for Citrus Leisure and Trans Asia
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citrus and Trans is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Citrus Leisure PLC and Trans Asia Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trans Asia 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 Trans Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trans Asia Hotels has no effect on the direction of Citrus Leisure i.e., Citrus Leisure and Trans Asia go up and down completely randomly.
Pair Corralation between Citrus Leisure and Trans Asia
Assuming the 90 days trading horizon Citrus Leisure is expected to generate 31.8 times less return on investment than Trans Asia. In addition to that, Citrus Leisure is 1.33 times more volatile than Trans Asia Hotels. It trades about 0.01 of its total potential returns per unit of risk. Trans Asia Hotels is currently generating about 0.31 per unit of volatility. If you would invest 3,980 in Trans Asia Hotels on August 27, 2024 and sell it today you would earn a total of 220.00 from holding Trans Asia Hotels or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 83.33% |
| Values | Daily Returns |
Citrus Leisure PLC vs. Trans Asia Hotels
Performance |
| Timeline |
| Citrus Leisure PLC |
| Trans Asia Hotels |
Citrus Leisure and Trans Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citrus Leisure and Trans Asia
The main advantage of trading using opposite Citrus Leisure and Trans Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citrus Leisure position performs unexpectedly, Trans Asia 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 Trans Asia will offset losses from the drop in Trans Asia's long position.| Citrus Leisure vs. Hatton National Bank | Citrus Leisure vs. CEYLON HOSPITALS PLC | Citrus Leisure vs. HVA Foods PLC | Citrus Leisure vs. Convenience Foods PLC |
| Trans Asia vs. Union Bank | Trans Asia vs. HVA Foods PLC | Trans Asia vs. Amana Bank | Trans Asia vs. Hatton National Bank |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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