Correlation Between Sanasa Development and Tangerine Beach
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By analyzing existing cross correlation between Sanasa Development Bank and Tangerine Beach Hotels, you can compare the effects of market volatilities on Sanasa Development and Tangerine Beach 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 Sanasa Development with a short position of Tangerine Beach. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanasa Development and Tangerine Beach.
Diversification Opportunities for Sanasa Development and Tangerine Beach
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sanasa and Tangerine is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Sanasa Development Bank and Tangerine Beach Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tangerine Beach Hotels and Sanasa Development 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 Sanasa Development Bank are associated (or correlated) with Tangerine Beach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tangerine Beach Hotels has no effect on the direction of Sanasa Development i.e., Sanasa Development and Tangerine Beach go up and down completely randomly.
Pair Corralation between Sanasa Development and Tangerine Beach
Assuming the 90 days trading horizon Sanasa Development is expected to generate 10.68 times less return on investment than Tangerine Beach. In addition to that, Sanasa Development is 1.05 times more volatile than Tangerine Beach Hotels. It trades about 0.02 of its total potential returns per unit of risk. Tangerine Beach Hotels is currently generating about 0.23 per unit of volatility. If you would invest 7,270 in Tangerine Beach Hotels on October 24, 2024 and sell it today you would earn a total of 1,000.00 from holding Tangerine Beach Hotels or generate 13.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanasa Development Bank vs. Tangerine Beach Hotels
Performance |
| Timeline |
| Sanasa Development Bank |
| Tangerine Beach Hotels |
Sanasa Development and Tangerine Beach Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanasa Development and Tangerine Beach
The main advantage of trading using opposite Sanasa Development and Tangerine Beach positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanasa Development position performs unexpectedly, Tangerine Beach 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 Tangerine Beach will offset losses from the drop in Tangerine Beach's long position.| Sanasa Development vs. Hatton National Bank | Sanasa Development vs. Lanka Realty Investments | Sanasa Development vs. Ceylon Cold Stores | Sanasa Development vs. DFCC Bank PLC |
| Tangerine Beach vs. HNB Finance | Tangerine Beach vs. Prime Lands Residencies | Tangerine Beach vs. Jat Holdings PLC | Tangerine Beach vs. E M L |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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