Correlation Between Sigiriya Village and Aitken Spence
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By analyzing existing cross correlation between Sigiriya Village Hotels and Aitken Spence Hotel, you can compare the effects of market volatilities on Sigiriya Village and Aitken Spence 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 Sigiriya Village with a short position of Aitken Spence. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sigiriya Village and Aitken Spence.
Diversification Opportunities for Sigiriya Village and Aitken Spence
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sigiriya and Aitken is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Sigiriya Village Hotels and Aitken Spence Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aitken Spence Hotel and Sigiriya Village 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 Sigiriya Village Hotels are associated (or correlated) with Aitken Spence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aitken Spence Hotel has no effect on the direction of Sigiriya Village i.e., Sigiriya Village and Aitken Spence go up and down completely randomly.
Pair Corralation between Sigiriya Village and Aitken Spence
Assuming the 90 days trading horizon Sigiriya Village Hotels is expected to under-perform the Aitken Spence. In addition to that, Sigiriya Village is 1.42 times more volatile than Aitken Spence Hotel. It trades about -0.02 of its total potential returns per unit of risk. Aitken Spence Hotel is currently generating about 0.04 per unit of volatility. If you would invest 5,650 in Aitken Spence Hotel on September 1, 2024 and sell it today you would earn a total of 1,050 from holding Aitken Spence Hotel or generate 18.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 87.32% |
| Values | Daily Returns |
Sigiriya Village Hotels vs. Aitken Spence Hotel
Performance |
| Timeline |
| Sigiriya Village Hotels |
| Aitken Spence Hotel |
Sigiriya Village and Aitken Spence Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sigiriya Village and Aitken Spence
The main advantage of trading using opposite Sigiriya Village and Aitken Spence positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sigiriya Village position performs unexpectedly, Aitken Spence 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 Aitken Spence will offset losses from the drop in Aitken Spence's long position.| Sigiriya Village vs. HNB Finance | Sigiriya Village vs. Prime Lands Residencies | Sigiriya Village vs. Jat Holdings PLC | Sigiriya Village vs. E M L |
| Aitken Spence vs. HNB Finance | Aitken Spence vs. Prime Lands Residencies | Aitken Spence vs. Jat Holdings PLC | Aitken Spence 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 CEOs Directory module to screen CEOs from public companies around the world.
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