Correlation Between Senkadagala Finance and Eden Hotel
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By analyzing existing cross correlation between Senkadagala Finance PLC and Eden Hotel Lanka, you can compare the effects of market volatilities on Senkadagala Finance and Eden 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 Senkadagala Finance with a short position of Eden Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senkadagala Finance and Eden Hotel.
Diversification Opportunities for Senkadagala Finance and Eden Hotel
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Senkadagala and Eden is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Senkadagala Finance PLC and Eden Hotel Lanka in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eden Hotel Lanka and Senkadagala Finance 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 Senkadagala Finance PLC are associated (or correlated) with Eden Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eden Hotel Lanka has no effect on the direction of Senkadagala Finance i.e., Senkadagala Finance and Eden Hotel go up and down completely randomly.
Pair Corralation between Senkadagala Finance and Eden Hotel
If you would invest 1,330 in Eden Hotel Lanka on August 28, 2024 and sell it today you would earn a total of 120.00 from holding Eden Hotel Lanka or generate 9.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 55.0% |
| Values | Daily Returns |
Senkadagala Finance PLC vs. Eden Hotel Lanka
Performance |
| Timeline |
| Senkadagala Finance PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eden Hotel Lanka |
Senkadagala Finance and Eden Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senkadagala Finance and Eden Hotel
The main advantage of trading using opposite Senkadagala Finance and Eden Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senkadagala Finance position performs unexpectedly, Eden 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 Eden Hotel will offset losses from the drop in Eden Hotel's long position.| Senkadagala Finance vs. Tangerine Beach Hotels | Senkadagala Finance vs. Browns Beach Hotels | Senkadagala Finance vs. Pegasus Hotels of | Senkadagala Finance vs. Kandy Hotels |
| Eden Hotel vs. Sanasa Development Bank | Eden Hotel vs. HDFC Bank of | Eden Hotel vs. COMMERCIAL BANK OF | Eden Hotel vs. Aitken Spence Hotel |
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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