Correlation Between SERENDIB HOTELS and Carson Cumberbatch
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By analyzing existing cross correlation between SERENDIB HOTELS PLC and Carson Cumberbatch PLC, you can compare the effects of market volatilities on SERENDIB HOTELS and Carson Cumberbatch 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 SERENDIB HOTELS with a short position of Carson Cumberbatch. Check out your portfolio center. Please also check ongoing floating volatility patterns of SERENDIB HOTELS and Carson Cumberbatch.
Diversification Opportunities for SERENDIB HOTELS and Carson Cumberbatch
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SERENDIB and Carson is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding SERENDIB HOTELS PLC and Carson Cumberbatch PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carson Cumberbatch PLC and SERENDIB HOTELS 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 SERENDIB HOTELS PLC are associated (or correlated) with Carson Cumberbatch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carson Cumberbatch PLC has no effect on the direction of SERENDIB HOTELS i.e., SERENDIB HOTELS and Carson Cumberbatch go up and down completely randomly.
Pair Corralation between SERENDIB HOTELS and Carson Cumberbatch
Assuming the 90 days trading horizon SERENDIB HOTELS PLC is expected to generate 1.9 times more return on investment than Carson Cumberbatch. However, SERENDIB HOTELS is 1.9 times more volatile than Carson Cumberbatch PLC. It trades about 0.25 of its potential returns per unit of risk. Carson Cumberbatch PLC is currently generating about 0.26 per unit of risk. If you would invest 980.00 in SERENDIB HOTELS PLC on September 5, 2024 and sell it today you would earn a total of 300.00 from holding SERENDIB HOTELS PLC or generate 30.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.87% |
| Values | Daily Returns |
SERENDIB HOTELS PLC vs. Carson Cumberbatch PLC
Performance |
| Timeline |
| SERENDIB HOTELS PLC |
| Carson Cumberbatch PLC |
SERENDIB HOTELS and Carson Cumberbatch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SERENDIB HOTELS and Carson Cumberbatch
The main advantage of trading using opposite SERENDIB HOTELS and Carson Cumberbatch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SERENDIB HOTELS position performs unexpectedly, Carson Cumberbatch 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 Carson Cumberbatch will offset losses from the drop in Carson Cumberbatch's long position.| SERENDIB HOTELS vs. Renuka City Hotel | SERENDIB HOTELS vs. Pegasus Hotels of | SERENDIB HOTELS vs. Kandy Hotels | SERENDIB HOTELS vs. Palm Garden Hotels |
| Carson Cumberbatch vs. SERENDIB HOTELS PLC | Carson Cumberbatch vs. Commercial Credit and | Carson Cumberbatch vs. Eden Hotel Lanka | Carson Cumberbatch vs. Tangerine Beach Hotels |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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