Correlation Between Dolphin Hotels and Keells Food
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By analyzing existing cross correlation between Dolphin Hotels PLC and Keells Food Products, you can compare the effects of market volatilities on Dolphin Hotels and Keells Food 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 Keells Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dolphin Hotels and Keells Food.
Diversification Opportunities for Dolphin Hotels and Keells Food
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dolphin and Keells is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Dolphin Hotels PLC and Keells Food Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keells Food Products 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 Keells Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keells Food Products has no effect on the direction of Dolphin Hotels i.e., Dolphin Hotels and Keells Food go up and down completely randomly.
Pair Corralation between Dolphin Hotels and Keells Food
Assuming the 90 days trading horizon Dolphin Hotels PLC is expected to generate 1.22 times more return on investment than Keells Food. However, Dolphin Hotels is 1.22 times more volatile than Keells Food Products. It trades about 0.04 of its potential returns per unit of risk. Keells Food Products is currently generating about 0.02 per unit of risk. If you would invest 3,070 in Dolphin Hotels PLC on August 27, 2024 and sell it today you would earn a total of 1,170 from holding Dolphin Hotels PLC or generate 38.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 76.77% |
| Values | Daily Returns |
Dolphin Hotels PLC vs. Keells Food Products
Performance |
| Timeline |
| Dolphin Hotels PLC |
| Keells Food Products |
Dolphin Hotels and Keells Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dolphin Hotels and Keells Food
The main advantage of trading using opposite Dolphin Hotels and Keells Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dolphin Hotels position performs unexpectedly, Keells Food 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 Keells Food will offset losses from the drop in Keells Food's long position.| Dolphin Hotels vs. Amana Bank | Dolphin Hotels vs. BROWNS INVESTMENTS PLC | Dolphin Hotels vs. PEOPLES LEASING FINANCE | Dolphin Hotels vs. Pan Asia Banking |
| Keells Food vs. Kandy Hotels | Keells Food vs. RENUKA FOODS PLC | Keells Food vs. Lanka Realty Investments | Keells Food vs. Nuwara Eliya 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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