Correlation Between Dolphin Hotels and Softlogic Life
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By analyzing existing cross correlation between Dolphin Hotels PLC and Softlogic Life Insurance, you can compare the effects of market volatilities on Dolphin Hotels and Softlogic Life 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 Dolphin Hotels with a short position of Softlogic Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dolphin Hotels and Softlogic Life.
Diversification Opportunities for Dolphin Hotels and Softlogic Life
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dolphin and Softlogic is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Dolphin Hotels PLC and Softlogic Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Softlogic Life Insurance and Dolphin 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 Dolphin Hotels PLC are associated (or correlated) with Softlogic Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Softlogic Life Insurance has no effect on the direction of Dolphin Hotels i.e., Dolphin Hotels and Softlogic Life go up and down completely randomly.
Pair Corralation between Dolphin Hotels and Softlogic Life
Assuming the 90 days trading horizon Dolphin Hotels PLC is expected to generate 1.37 times more return on investment than Softlogic Life. However, Dolphin Hotels is 1.37 times more volatile than Softlogic Life Insurance. It trades about 0.25 of its potential returns per unit of risk. Softlogic Life Insurance is currently generating about 0.1 per unit of risk. If you would invest 3,020 in Dolphin Hotels PLC on August 31, 2024 and sell it today you would earn a total of 1,190 from holding Dolphin Hotels PLC or generate 39.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dolphin Hotels PLC vs. Softlogic Life Insurance
Performance |
| Timeline |
| Dolphin Hotels PLC |
| Softlogic Life Insurance |
Dolphin Hotels and Softlogic Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dolphin Hotels and Softlogic Life
The main advantage of trading using opposite Dolphin Hotels and Softlogic Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dolphin Hotels position performs unexpectedly, Softlogic Life 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 Softlogic Life will offset losses from the drop in Softlogic Life's long position.| Dolphin Hotels vs. Amaya Leisure PLC | Dolphin Hotels vs. Carson Cumberbatch PLC | Dolphin Hotels vs. National Development Bank | Dolphin Hotels vs. RENUKA FOODS PLC |
| Softlogic Life vs. Renuka Agri Foods | Softlogic Life vs. Ceylon Tobacco | Softlogic Life vs. BROWNS INVESTMENTS PLC | Softlogic Life vs. Lanka Milk Foods |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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